BRIEF HISTORY OF CURRENCY IN BHUTAN
Commerce in Bhutan was traditionally
carried out through a system of barter in rice, butter, cheese, meat,
wool, hand-woven cloth and other local produce. Bhutan first began to
produce coins in silver towards the end of the 18th century, mainly
for use in trade with the plains. These were followed by coins struck
in alloyed silver, copper or brass, which were used for minor local
purchases. These pieces, known as "Ma-trum" or "Chhe-trum"
were struck by several local chieftains, rather than by the central
government. Coin production continued into the 20th century under the
reign of the first King, Druk Gyalpo Ugyen Wangchuck (1907-26), who
gradually improved the quality of striking. In 1928/29, during the reign
of the second King, Druk Gyalpo Jigme Wangchuck (1926-52), fine machine
struck silver and copper coins were introduced into circulation, marking
the beginning of modern coinage in Bhutan. However, throughout this
period the use of coins remained limited, and barter remained the predominant
means of carrying out transactions, and even government officials were
paid in kind, rather than in cash. In the mid 1950's, during the reign
of the third King, Druk Gyalpo Jigme Dorji Wangchuck (1952-72), the
economy gradually started to become more widely monetised, with further
issues of "silver" coins, using the dies of his father, but
of a nickel alloy. In 1968, the Bank of Bhutan was established as a
further step towards full monetisation. By this time most salaries were
paid in cash, rather than in kind.
Monetary reform commenced in 1974, during the reign of the 4th King,
Druk Gyalpo Jigme Singye Wangchuck, with the issue by the Ministry of
Finance of the first bank notes in 1974 coinciding with His Majesty's
Coronation. The unit of currency was accordingly standardised with 100
Chhetrum being equal to 1 Ngultrum. In 1982 the Royal Monetary Authority
of Bhutan (RMA) was established to act as the central bank of Bhutan.
The RMA commenced its operations in 1983, when it assumed liability
for all notes and coins previously issued by the Ministry of Finance.
Denomination of Banknotes and Coins
in Bhutan
At present, notes in Bhutan are issued in the denominations of Nu.1,Nu.5,
Nu.10, Nu.20, Nu.50, Nu.100, Nu.500 and Nu.1000. The printing of notes
in the denominations of Nu.2 has been discontinued, and the Nu.1 denomination
has been coinised. However, such notes issued earlier which are still
in circulation are still considered legal tender.
Coins are available in denominations of Ch.5, Ch10, Ch.25, Ch.50 and
Nu.1.
Currency Management
The various denominations of banknotes and coins are decided by the RMA's Board of Directors on the advice of the RMA. The designs and security features of the banknotes and coins are also proposed by the RMA and subject to approval by the Board of Directors. The RMA estimates the quantities of notes and coins of different denominations that are likely to be needed, and after obtaining the approval of the Board, invites tenders from renowned international security printing companies and mints. The notes and coins received from the printers are stored in the vaults and issued to the banks and the public on request. Notes and coins returned from circulation by the banks and the public are examined and only notes and coins which are fit for circulation are reissued. "Soiled and mutilated" notes are destroyed by shredding so as to maintain the quality of the notes in circulation.
Refund of soiled and mutilated notes
Soiled notes are those which have become
dirty and limp due to use, and mutilated notes are those which are torn,
disfigured, burnt etc. Such notes can be exchanged at the RMA. Full
value is payable against soiled notes. Payment of value against mutilated
notes is made in accordance with the Note Refund Rules which have been
framed by the Board of Directors under Section 21 (9) of the RMA Act.General
features of bank notes
The first series of banknotes issued by the Ministry of Finance and
the Bank of Bhutan were all of the same size, irrespective of the denomination.
However, this sometimes made it difficult for the largely rural population
to differentiate between the denominations.
NGULTRUM ONE (1)
Size: 120 x 60 mm
Paper quality:
Security featur:
Lithographic: Anti-scanner and anti-copier line structure
Micro lettering Intaglio : Incorporated Guilloches Micro Text Recognition
Feature for the Blind: measured tactility has to meet 70 microns + 5.
Intaglio line front "Royal Monetary Authority of Bhutan".
Measured tactility shall vary from letter to letter within the text
line without variation of color.Optically variable intaglio latent image
characterized by several embossed design elements in combination with
background printed patterns. When the banknote is held at different
angles, the denomination figure will appear dark on light background
or light on dark background depending on the angle of vision.
Letterpress: Black magnetic serial numbers.
Phosphorescent block (Front side only)
Flexographic: Two layer varnishes applied on front
and reverse side to prevent soiling.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM FIVE (5)
Size: 125 x 60 mm
Paper quality:
Lithographic: Rainbow printing,Rainbow printing with fluorescence (reverse side only) Anti-scanner and anti-copier line structure Microlettering
Intaglio: Incorporated GuillochesMicro Text Recognition Feature for the Blind: measured tactility has to meet 70 microns + 5.Intaglio line front„Royal Monetary Authority of Bhutan“: measured tactility shall vary from letter to letter within the text line without variation of colour.Optically variable intaglio latent image characterized by the superimposition of several embossed design elements in combination with background printed patterns. When the banknote is held at different angles, the denomination figure will appear dark on light background or light on dark background depending on the angle of vision.
Letterpress: Black magnetic serial numbers. Phosphorescent block (front side only)
Flexographic: Two layer varnish applied on front and reverse side to prevent soiling.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM TEN (10)
Size: 125 x 65 mm
Paper quality:
Security
feature:
Lithographic: Rainbow printing Rainbow printing with
fluorescence (reverse side only)Anti-scanner and anti-copier line structure
Microlettering
Intaglio: Incorporated GuillochesMicro Text Recognition
Feature for the Blind: measured tactility has to meet 70 microns + 5.
Intaglio line front„Royal Monetary Authority of Bhutan“:
measured tactility shall vary from letter to letter within the text
line without variation of colour.Optically variable intaglio latent
image characterized by the superimposition of several embossed design
elements in combination with background printed patterns. When the banknote
is held at different angles, the denomination figure will appear dark
on light background or light on dark background depending on the angle
of vision.
Letterpress: Black magnetic
serial numbers.Phosphorescent block (front side only)
Flexographic: Two layer varnish applied on front and
reverse side to prevent soiling
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Design: Obverse
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Design:
Reverse
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NGULTRUM TWENTY
(20)
Size: 132 x 65 mm
Paper quality:
Security feature:
Lithographic: Rainbow printing Rainbow printing with
fluorescence (reverse side only) Anti-scanner and anti-copier line structure
Microlettering
Intaglio: Incorporated GuillochesMicro Text Recognition
Feature for the Blind: measured tactility has to meet 70 microns + 5.
Intaglio line front„Royal Monetary Authority of Bhutan“:
measured tactility shall vary from letter to letter within the text
line without variation of colour.Optically variable intaglio latent
image characterized by the superimposition of several embossed design
elements in combination with background printed patterns. When the banknote
is held at different angles, the denomination figure will appear dark
on light background or light on dark background depending on the angle
of vision.
Letterpress: Black magnetic serial numbers.
Phosphorescent block (front side only)
Flexographic: Two layer varnish applied on front and
reverse side to prevent soiling
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Design:
Obverse
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Design:
Reverse
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NGULTRUM FIFTY (50)
Size: 139 x 65 mm
Paper quality
Security feature:
Lithographic: Rainbow printing Rainbow printing with
fluorescence (reverse side only) Anti-scanner and anti-copier line structure
Microlettering
Intaglio: Incorporated Guilloches Micro Text Recognition
Feature for the Blind: measured tactility has to meet 70 microns + 5.
Intaglio line front "Royal Monetary Authority of Bhutan“:
measured tactility shall vary from letter to letter within the text
line without variation of colour.Optically variable intaglio latent
image characterized by the superimposition of several embossed design
elements in combination with background printed patterns. When the banknote
is held at different angles, the denomination figure will appear dark
on light background or light on dark background depending on the angle
of vision.
Letterpress: Black magnetic serial numbers.Phosphorescent
block (front side only)
Offset/Flexographic: Two layer varnish applied on front
and reverse side to prevent soiling.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM HUNDRED (100)
Size: 146 x 70 cm
Paper quality: 100 % cotton
Security features:
Lithographic: Rainbow printing
Rainbow printing with fluorescence (reverse side only)
Anti-scanner and anti-copier line structure
Microlettering
Intaglio: Incorporated
Guilloches
Micro Text
Recognition Feature for the Blind: measured tactility
has to meet 70 microns + 5.
Intaglio line front„Royal Monetary Authority of Bhutan“:
measured tactility shall vary from letter to letter within the text
line without variation of colour.Optically variable intaglio latent
image characterized by the superimposition of several embossed design
elements in combination with background printed patterns. When the banknote
is held at different angles, the denomination figure will appear dark
on light background or light on dark background depending on the angle
of vision.
Letterpress: Black magnetic
serial numbers.
Phosphorescent block (front side only)
Flexographic: Two layer varnish applied on front and reverse side to prevent soiling.
Watermark:
Running along the border of notes at the top and bottom showing part
of the wording "Royal Monetary Authority.
Intaglio Printing: The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch.
Fluorescence: Fluorescence fiber yellow which is not
visible to naked eye but visible only under ultraviolet light.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM FIVE HUNDRED(500)
Size: 13.0 x 6.2 cm
Paper quality: 100 % cotton
Security feature:
Watermark: Running along the border of notes at the
top and bottom showing part of the wording "Royal Monetary Authority.
Intaglio Printing: The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch.
Fluorescence: Fluorescence fiber yellow which is not
visible to naked eye but visible only under ultraviolet light.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM THOUSAND(1000)
Size: 13.0 x 6.2 cm
Paper quality: 100 % cotton
Security feature:
Watermark: Running along the border of notes at the
top and bottom showing part of the wording "Royal Monetary Authority.
Intaglio Printing:The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch.
Fluorescence: Fluorescence fiber yellow which is not
visible to naked eye but visible only under ultraviolet light.
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Design:
Obverse
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Design:
Reverse
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Old Notes:
NGULTRUM
FIVE (5)
Size: 13.0 x 6.2 cm
Paper quality: 100 % cotton
Security feature:
Watermark: Running along the border of notes at the
top and bottom showing part of the wording "Royal Monetary Authority.
Intaglio Printing: The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch.
Fluorescence: Fluorescence fiber yellow which is not
visible to naked eye but visible only under ultraviolet light.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM
TEN (10)
Size: 14.0 x 7.0 cm.
Paper: 100 % cotton.
Security feature:
Watermark:Running along the border of notes at the
top and bottom showing part of the wording "Royal Monetary Authority.
Security Thread: Contain a plain, fully embedded security
thread on the left side of the notes.
Intaglio Printing: The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch, in all denomination
of notes.
Fluorescence: Fluorescence
fiber yellow which is not visible to naked eye but visible only under
ultraviolet light.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM TWENTY (20)
Size: 15.2 x 7.0 cm.
Paper quality: 100% cotton.
Security
feature:
Watermark: Running
along the border of notes at the top and bottom showing part of the
wording "Royal Monetary Authority".
Security Thread: Contain
a plain, fully embedded security thread on the left side of the notes.
Intaglio Printing:
The name of the Issuing Authority ie Royal Monetary Authority of Bhutan
on the face of the note in Dzongkha and in English on the reverse, denomination
in English and Dzongkha, guarantee and promise clause, RMA Chairman's
signature are printed in intaglio i.e. in raised prints, which can be
felt by touch, in all denomination of notes.
Fluorescence: Fluorescence
fiber yellow which is not visible to naked eye but visible only under
ultraviolet light.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM FIFTY (50)
Size: 15.5 x 7.0cm
Paper Quality: 100 % cotton.
Security feature:
Watermark: Running along the border of notes at the
top and bottom showing part of the wording "Royal Monetary Authority".
Security Thread:Contain a plain, non-readable fully
embedded security thread on the left side of the notes.
Intaglio Printing:The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch, in all denomination
of notes.
Fluorescence: Fluorescence fiber yellow which is not
visible to naked eye but visible only under ultraviolet light.
See through Register:Contain small floral design printed in precise
register on both sides of the notes . When the note is held up to the
light, part of the design printed on the back will fit exactly within
unprinted areas on the front, or alternatively printed areas of two
designs may coincide perfectly.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM HUNDRED (100)
Size: 16.1 x 7.0 cm
Paper Quality:100 % cotton.
Security feature:
Watermark: Crossed Dorji (Dorji jardrum) watermark
with a light and shade effect in the watermark window on the left side
of the note.
Security thread: Windowed security thread alternately
visible on the obverse with the inscriptions 'RMBA' , but totally embedded
on the reverse. When held against the light, the window security can
be seen as one continuous line.
Intaglio Printing: The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch, in all denomination
of notes.
Fluorescence: Fluorescence fiber yellow which is not
visible to naked eye but visible only under ultraviolet light.
See through Register:Contain small floral design printed in precise
register on both sides of the notes . When the note is held up to the
light, part of the design printed on the back will fit exactly within
unprinted areas on the front, or alternatively printed areas of two
designs may coincide perfectly.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM FIVE HUNDRED (500)
Size: 16.0 x 7.0cm
Paper Quality:100 % cotton.
Security feature:
Watermark: Crossed Dorji (Dorji jardrum) watermark
with a light and shade effect in the watermark window on the left side
of the note.
Security thread: Windowed security thread alternately
visible on the obverse with the inscriptions 'RMBA' , but totally embedded
on the reverse. When held against the light, the window security can
be seen as one continuous line.
Intaglio Printing: The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch, in all denomination
of notes.
Fluorescence: Fluorescence fiber yellow which is not
visible to naked eye but visible only under ultraviolet light.
See through Register:Contain small floral design printed in precise
register on both sides of the notes . When the note is held up to the
light, part of the design printed on the back will fit exactly within
unprinted areas on the front, or alternatively printed areas of two
designs may coincide perfectly.
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Design:
Obverse
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Design:
Reverse
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CHETRUM
(COINS)
*Minting of Chetrum 10 & 5 has been discontinued, as per the recommedation
of Board of Directors.
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Legal provisions
against counterfeiting:
Printing and circulation of forged notes are offences under Chapter
5 section 101 of the RMA ACT 2010 are liable, upon conviction in a court
of law, to an appropriate penalty.