In a tit for tat measure, Jaigaon merchants’association decided not to accept ngultrums
Banks in the country’s commercial hub, Phuentsholing, were busier than usual yesterday, as hundreds of merchants from the adjoining Indian town of Jaigaon crowded the tellers to close their bank accounts, and transfer balances .Although non-resident non-Bhutanese have until March 15 to close accounts, according to the Royal Monetary Authority
(RMA) circular, most chose to do it yesterday, so that the transfer to their accounts in India is in INR (Indian rupee).“We were told that, if we close our accounts from Monday, March 12, we’ll be given the balance in ngultrum,” a Jaigaon shopkeeper said.
“What’ll we do with ngultrum and where’ll we invest? It isn’t going to be accepted anywhere else in India,” the fishmonger said. “Everything happened immediately that we didn’t get time to raise the issue.”
In Phuentsholing town and in Jaigaon, people stood around in groups discussing the RMA’s sudden decision, and the subsequent response from the Jaigaon business community.
While Bhutanese discussed why ngultrum was not being accepted in Jaigaon, non-Bhutanese tried to figure why they were not being allowed to hold an account in Bhutanese banks. “I don’t know how I’ll send money to my family, because my savings are in ngultrum,” a non-Bhutanese mechanic said. “I don’t know where to take my 200,000 ngultrum I saved so far.”
The banks, however, refused to divulge the number of accounts being closed and the amount of INR being transferred.
In response to the RMA’s circular, the Jaigaon merchant association decided to stop accepting the ngultrum, following a meeting with members of the association on Saturday, March 10.
According to a press release from the association’s president, BL Bardia, the association resolved that, in view of present situation occurring due to non-issue policy of bank draft, real time gross settlement system (RTGS), and exchange of ngultrum into Indian rupee (INR), the businessmen of Jaigaon were compelled not to accept ngultrum further.
The press release stated that this would continue until the Bhutanese government comes with a suitable decision. “We respect the law of Bhutan government and Bhutan currency and it should be vice-versa,” the president mentioned. “We hope suitable decision will be taken, keeping in view of the outstanding Indo-Bhutan relation.”
The impact of the merchants association decision was felt the day it was announced.
“I wanted to chew ‘meetha pan’ (sweet betel), but they asked me to pay in rupee,” a Bhutanese customer said. “I didn’t have rupee, so the shopkeeper then asked me to pay ten ngultrums, instead of INR 5.”
Bhutanese customers, who had crossed over to Jaigaon for shopping, tried their best to negotiate with the shopkeepers to accept ngultrum.
Some gave up and returned empty handed, but few managed to convince the shopkeepers and came back with goods worth less than a thousand ngultrums.
Bhutanese, living in Jaigaon, have also been affected.
The residents said they were unable to buy ration or basic items for the past two days because they don’t have INR. “When we went to exchange ngultrum, no Indian shopkeepers agreed,” a resident said. “They said they are out of INR too and ngultrum is no use to them.”
A Phuentsholing businessman said, “The only solution to the problem could be if Jaigaon shopkeepers ask only INR and we should also ask them to return the change only in INR.” But a few shopkeepers, who are unaware of the situation, were accepting ngultrums as of yesterday.
A government decision is expected this week on the issue.
Source: Kuenselonline Newspaper
(Phuentsholing) Government’s attempt to ease the rupee crunch by directing the financial institutions to close all accounts of non-resident foreigners, could adversely impact the country’s economy.It is likely to hit the business in the border towns hard and may also dent the trade relations between the two border towns.Impact ,Soon after the notification was issued by Royal Monetary Authority (RMA) to do away with bank accounts of non-resident foreigners, hundreds of Indians queued up outside the banks in Phuentsholing to close their accounts.
