To keep the economy moving and continue the supply of Indian Rupee in the market, the Finance Minister said measures have been put in place. The Royal Monetary Authority has already issued a circular to the banks to prioritise the use of Rupee.
Starting from now, the commercial banks shall limit the release of Indian notes. Unlike in the past, Bhutanese will be given only 10,000 Rupees per day and 50,000 in a month upon the production of Citizen Identity Cards. Credit card, debit and pre-paid card holders will be permitted to withdraw 10,000 Rupees per instance and a maximum of Nu. 50,000.
The Central Bank has also asked the banks not to open deposit accounts in the name of non-resident foreigners beginning yesterday. Meanwhile all the existing deposit accounts of non-resident foreigners will be closed by March 15. However, resident foreigners holding valid Bhutanese business licenses and work permits will be eligible to hold accounts in banks. While those resident foreigners without bank account will be permitted to remit Indian rupee subject to validation from their concerned employers.
All export proceeds must be brought in by the exporters through the banking channel within 91 days from the date of export. The Custom Authority, the commercial banks and the RMA shall jointly review and monitor.
While on the fiscal front, the Finance minister Wangdi Norbu said, the government is looking at enhancing export potential in the hydropower sector and accelerating socio-economic development. “What government has done, as I have announced in the Parliament is to enhance credit line from Government of India from three billion to six billion. I met the finance minister, and they expressed that will be able to help but only the financial year starts which is by April,” he said.
Lyonpo added that, other arrangements include “Swap” arrangement with the Reserve Bank of India under the SAARC finance. Under the arrangement provision will be made for currency exchange among SAARC countries at lesser cost compared to commercial borrowings. Proposal is also being submitted to the Government of India for loan repayment to be made in half-yearly installment. It is also one of the short term measures the government is looking into.
