Economy

Bhutan central bank warns citizens not to hold Indian currency in cash

Safe zone: The RMA has advised the public to deposit Indian rupee earnings in bank accounts .   | Photo Credit: Getty Images/iStockPhoto

The Royal Monetary Authority (RMA) of Bhutan has warned Bhutanese citizens of the risks of holding Indian currency, saying that it would not be responsible for any future actions — such as demonetisation — taken by the Reserve Bank of India. RMA has advised the citizens to deposit all their Indian currency in the banks and not to hold it in cash.

“The RMA would like to inform the general public to deposit any INR earnings/receipts in their accounts maintained with any commercial banks and refrain from holding the INR currency notes in cash,” the Royal Monetary Authority said in a statement.

“The RMA shall not be liable or responsible in case of any policy changes by the RBI [Reserve Bank of India], including demonetisation of INR currency notes in the future.”

The Bhutanese central bank also warned citizens of counterfeit ₹500 notes in the Indian currency and requested the public to be careful while accepting notes of this denomination. Indian currency is legal tender in Bhutan.

The RMA also said that as of June 11, “individual concerns may bring in or take out of Bhutan new series of INR currency notes of denomination ₹500, subject to the limit of INR ₹25,000 per person until further notice.”

Reason for notification

“These instructions [regarding the limits on the movement of the currency] are the reason behind the notification being issued,” an official at the Indian embassy in Bhutan told The Hindu on condition of anonymity.

“There has been no new information about any other action by the RBI. The instruction regarding the Indian notes were just as a matter of precaution,” the embassy official added.

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Printable version | Oct 25, 2020 10:33:24 PM | https://www.thehindu.com/business/Economy/bhutan-central-bank-warns-citizens-not-to-hold-indian-currency-in-cash/article24212946.ece

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