To further promote inward remittance, the Royal Monetary Authority (RMA) yet again extended the 2 % incentive on inward remittance for another year, starting this month. The scheme was previously extended in July last year. According to the RMA, inward remittances have been increasing with an average growth rate of 30% every year.
The RMA launched its incentives on the inward remittance scheme in May 2021. As per the Incentives on Remittance Scheme, the beneficiaries can get incentives of 2 % upon converting the remitted amount to ngultrum. The conversion is done based on the prevailing exchange rates.
Since 2016, the majority of inward remittances were from Australia, the United States, Kuwait, the United Arab Emirates, and Qatar.
According to the impact assessment carried out by the RMA from June to November last year, the remittance amount was 3 % higher than the expected value during the incentive scheme period.
It also found out that the monetary incentive had helped ensure the continuity of remittance flows through formal channels and reduced the cost of remitting to Bhutan.
So far, over USD 130 M has been received and over Nu 47 M was disbursed as incentives in Thimphu alone since June 2021.
Kinzang Lhadon
Edited by Kipchu
