It has come to RMA's notice that the Vehicle Dealers in Bhutan are extending credit with interest to the customers who are not able to deposit the equity portion after the RMA has issued restriction on Loan to Value ratio (LTV) on the Financial Institutions. Therefore, providing such financial services defeats the RMA`s objective of introducing the LTV requirement and it also contravenes Section 11 of the Financial Services Act of Bhutan 2011.
Hence, Vehicle Dealers providing such schemes are hereby notified to refrain from extending such schemes immediately. Any vehicle dealers and customers found extending/seeking such schemes shall be liable as per the Financial Services Act of Bhutan 2011.