Agency: The Royal Monetary Authority (RMA) issued a public notification on 1st September 2025 where it said to reduce the risk of counterfeit banknotes, protect currency from fuel-related damage, and support Bhutan’s transition toward a cash-lite digital economy, the RMA , in close collaboration with the Ministry of Finance (MoF), urged the public to adopt digital payment, such as mobile banking applications, mobile wallets, and iUPI Global QR codes for vehicle fueling and other daily transactions.
It said digital payments has benefits like reduced risks as less physical money means a lower risk of theft, loss, damage, or counterfeit notes. It was noted that digital payments are safer, faster, simpler, and accessible anytime, anywhere and it helps authorities monitor and prevent fraud.
To ensure a smooth transition, the RMA said it will implement this initiative in a phased manner.
In phase 1 from September to December 2025, RMA will promote and encourage the use of digital payments (mobile apps, mobile wallets, and iUPI Global QR codes) for vehicle fueling and other daily transactions.
In phase 2 from after December 2025, based on the outcomes of phase one, the RMA may consider introducing a surcharge on cash transactions to minimize risks, protect banknotes, and further promote digital payments in line with the national goal of a cash-lite economy.
As part of phase 1, the RMA will be collecting data from fuel stations across the country.
An official from RMA said if the surcharge does come in then it will not be a blanket one as it will be kept in mind that there is a segment of the population which is not comfortable with online transactions and still needs to use cash.
The official said the proposed surcharge is not on daily cash transactions like buying things, but when the money is to be deposited in the bank or withdrawn in cash.
The official said even if the surcharge is introduced, there could be certain ceilings up to which the surcharge is exempt.
The notification has created some panic among the business community as there is a feeling that this is another additional tax on top of PIT, BIT, CIT and the upcoming GST.
A businessman said that many of his customers still pay in cash, and if there is a surcharge to deposit it then he would have to increase the price of his goods as this is a form of tax.
The RMA official said the surcharge is not finalized and it is not clear what the rate would be.
It will also have to be seen if this needs Parliamentary approval or if RMA already has the power to impose it under its current legislation.