Bhutan yet to re­ceive counter value of de­mon­e­tized INR from In­dia

Business Bhutan - - MONEY - Lucky Wangmo

The cen­tral bank, Royal Mon­e­tary Au­thor­ity (RMA), is yet to re­ceive the fi­nal con­fir­ma­tion on whether In­dia will re­fund the equal amount of de­mon­e­tized notes col­lected in Bhutan, which amounts to a stag­ger­ing 2.4bn.

The Deputy Gov­er­nor of RMA, Yangchen Tsh­ogyel, told Busi­ness

Bhutan that RMA col­lected the de­mon­e­tized notes from the pub­lic with the un­der­stand­ing that this money is the li­a­bil­ity of In­dia and that they would honor it by re­im­burs­ing the equiv­a­lent value to Bhutan.

“How­ever, some­time in early mid Novem­ber, we got in­for­ma­tion from the Re­serve Bank of In­dia (RBI) that any de­ci­sion to honor what has been col­lected and to give counter value rests with the Govern­ment of In­dia,” said the Deputy Gov­er­nor.

This was also the pri­mary rea­son for freez­ing the ac­counts. “We have col­lected all the de­mon­e­tized notes, but on the other hand, there is no guar­an­tee that the counter value will be given,” she said. “Our hands are tied.”

Un­til a de­ci­sion from the In­dian govern­ment comes through, it is un­cer­tain whether an equal value of the de­mon­e­tized cur­rency would be re­im­bursed.

Fi­nance Min­is­ter Nam­gay Dorji how­ever re­as­sured that there is no ques­tion of whether cen­tral bank will get the counter value or not. “We have com­pleted all the process and ev­ery­thing is sys­tem­ized. There is no is­sue,” he told Busi­ness

Bhutan in a tele­phone in­ter­view.

The Min­istry of Fi­nance is in touch with In­dia’s Min­istry of Ex­ter­nal Af­fairs in New Delhi.

Ly­onpo Nam­gay Dorji said that the RBI is cur­rently busy with de­mon­e­ti­za­tion in In­dia and has not been able to give time to look into Bhutan’s case.

The RMA has fol­lowed all the terms and con­di­tions of the RBI and Bhutan should re­ceive the counter value from In­dia, reaf­firmed Ly­onpo.

Mean­while, the RMA re­ceived only Rs 35mn on De­cem­ber 5 although the weekly re­quire­ment of INR in the coun­try is Rs 250mn.

“We have re­ceived only Rs 100 de­nom­i­na­tion notes which is be­ing ra­tioned out to the pub­lic due to the pil­grim­age sea­son,” said Deputy Gov­er­nor Yangchen Tsh­ogyel. “We are con­stantly talk­ing with the RBI and we are push­ing for an in­creased amount,” she said,

The RMA is ex­pect­ing an in­creased amount of INR in the next con­sign­ment. The cen­tral bank will be ra­tioning out INR to more num­ber of peo­ple from next week. Cur­rently, only 50 peo­ple can avail INR 5,000 from RMA in a day, that too on a lucky dip ba­sis.

Newspapers in English

Newspapers from Bhutan

© PressReader. All rights reserved.