Organization Structure

Functionally,the RMA presently consist of 10 Departments, each headed by a Director, reporting to Governor or the Deputy Governors as the case may be with the exception of the Internal Audit Department and Management Secretariat which report directly to the Governor.

The Internal Audit Department is explicitly set up under the Royal Monetary Authority Act of Bhutan,2010 with certain statutory functions.

The Financial Supervision and Regulation Department is set up in 1992 under the Royal Monetary Authority Act.1982 as amended by the Financial Institution Act 1992 and is required to engage in the continuous regulation and supervision of all financial institutions in Bhutan.

Except three Regional Clearing Offices located in Phuntsholing, Mongar and Gaylegphu, who are responsible for looking after the operations of the check clearing facilities at their respect regions, the RMA ,at present ,does not have branch offices. The RMA presently has 163 employees (as of 31March,2011, PIS record). The various Departments of the RMA along with their core functions as follows:

(a) Currency Management Department

  • Print or mint, issue and exchange or destroy currency notes and coins not fit for circulation with a view to provide the public adequate quantity of supplies of currency notes and coins and in good quality

(b) Banking Department

  • Banker to Government: Maintain the main account of the Government and perform banking function to Government;
  • Banker to banks: maintain banking accounts of all banks;
  • Depository and fiscal agent of international Financial Institutions: maintain IMF Accounts 1 & 2 and SDR Account

(c) Research and Statistics Department

  • Engage in policy-oriented research on emerging macroeconomic issues for policy makers and the general public;
  • Primary source of information on monetary and financial as well as, balance of payments statistics for Bhutan;;
  • Prepare, publish and distribute major publications including the RMA’s Annual Monetary Policy Statement, Annual Report, Quarterly Selected Economic Indicators, and the Monthly Bulletin Chapter X, Sections 166 and 167 of the RMA Act of Bhutan 2010 stipulates that the RMA at any time may require such persons, companies, organizations or government bodies to submit information with regard to monetary and credit systems, balance of payments or banking as may be specified for the purpose of carrying out its functions. Failure to do so constitutes a legal offense and is liable to, upon conviction in a court of law, to appropriate penalty.

(d) Management Secretariat

  • Provide administrative and secretariat support to the Governor and the Board
  • Attend to protocol duties of the Governor; and
  • Attend to RMA Communication Policy

(e) Foreign Exchange and Reserve Management Department

  • Manage the Foreign Exchange Regulations 1997 with a objective to facilitate external trade and promote orderly foreign exchange payments; and
  • Manage country’s foreign reserve as per the guidelines enshrined in the Reserve Management- Statement of Policy..

(f) Information Technology Department

  • Plan, develop and support the computerization of the RMA's operations as well as data processing systems; and
  • Manage and support the RMA application systems including new payment systems initiatives and projects, database, network communication link and other computer mediated communication tools.

(g) Financial Regulation and Supervision Department

  • Prescribe broad parameters of banking operations to insure efficient functioning of countries ‘s banking and financial system; and
  • Supervise them through both off-site and on- site inspection.

(h) Administration and Finance Department

  • Implement the Authority’s policies pertaining to recruitment, placement, promotion, transfer and training of staff;
  • Administer discipline management system in the Authority by updating/ supplementing/ revisiting policy issues/ instructions:
  • Oversee the conduct of employees and take disciplinary actions/ proceedings as par the RMA Staff Regulation;
  • Formulation of RMA’s Annual Budget, review of expenditure as against budgetary allocation;
  • Administration of RMA’s Expenditure Rules;
  • Acquisition, construction, maintenance, consolidation and disposal of office equipments in line with approved procedures; and
  • Evolve HRD policies of RMA.

(i) Payment and Settlement System Departments

  • Frame policy governing the operations of payment systems;
  • Design, develop and integrate new payment systems and/or facilitate such implementations;
  • Issue authorization to any person / entity desirous to commence or carry on a payment/ settlement system in Bhutan;
  • Lay down policies relating to regulation/ supervision / governance and oversight of payment systems;
  • Issue directions, generally, for the purpose of regulating the payment systems;
  • Impose penalties/ fines when a person/ company contravenes any of the provisions of the Payment and Settlement; and
  • Function as the coordinating Department for SAARC and ACU Payment.

(j) Internal Audit Department

  • Conduct surprise or periodical audit of Authority , to check whether the work is being carried out according to the prescribed procedures / instructions without any deviations/aberration and report the findings to governor;
  • Coordinate work in connection with appointment of External Auditors for RMA; and
  • Member secretary to the Audit Committee.

The organization chart of the RMA is given here: