Banks in Phuentsholing have stopped issuing Rupee. It has been suspended by the Royal Monetary Authority (RMA) until further notice. This action has been taken after customers rushed in to withdraw Rupee and in the process broke the door’s glass. The incident happened today. However, the banks will continue accepting demand drafts and telephone transfers to India.
Except for the Bank of Bhutan, no other banks in Phuentsholing had Rupee in reserve until today. People thronged the Bank of Bhutan to buy Rupees for the past three days.
Our reporter, Sonam Wangdi, said that this morning as well, many people had gathered at the entrance of BoB to get Rupee withdrawal token. As soon as the door opened, people started rushing in. Not able to withstand the pressure from the rush, the glass of the entrance door was broken. Following this behavior of the crowd, the Royal Monetary Authority suspended issuing rupee immediately.
“We do not have rupee, we have to borrow those cash. After borrowing we give the cash to the Bank of Bhutan and BoB brings that through paying insurance and freight charges. We wanted to genuinely meet the requirements of the general public but if this is the scenario, if they come in mobs and destroy the bank’s properties then we cannot make the facilities available. Until they discipline the cash issue is suspended,” said the Deputy Governor of the RMA, Pushpalal Chhetri.
He added that RMA has already made provisions for all essential imports like fuel and food and that the Rupee is available unlimited through the banking channel. But the Rupee has to be channelised through the banking system to maintain proper check and balance of rupee in the country. The limit set for individual exchange isRe. 10,000 in a day and Re. 50,000 in a month for individuals. This, he said, has been set keeping in mind the incidental requirements of the people.
“You just cannot demand 10,000 and go across the border to change with Ngultrum. We do not want that type of business because this is just meant for travel outside the country. And daily you don’t need 10,000 also. Do you think every one of them will travel? I don’t think so. There is a vested interest,” questioned the Deputy Governor.
However, for other banks across the country, issuing of Rupee is expected to begin by next week. After replenishing the Rupee reserve last evening, the currency has been sent to all the banks in the country this morning.
Meanwhile, there have been reports of a thriving rupee black business between the two bordering towns. According to some of the businessmen in Jaigaon, the rate ranges from 3 to 10 Ngultrum per 100 Rupees.
The good news, however, is that most of the business houses in Jaigaon are also accepting Ngultrums, despite their association’s decision to not to accept Bhutanese currency.
