𝐁𝐡𝐮𝐭𝐚𝐧 𝐁𝐚𝐭𝐭𝐥𝐞𝐬 𝐂𝐨𝐮𝐧𝐭𝐞𝐫𝐟𝐞𝐢𝐭 𝐒𝐮𝐫𝐠𝐞 𝐀𝐦𝐢𝐝 𝐆𝐫𝐨𝐰𝐢𝐧𝐠 𝐂𝐨𝐧𝐜𝐞𝐫𝐧𝐬 𝐅𝐫𝐨𝐦 𝐏𝐮𝐛𝐥𝐢𝐜 𝐀𝐧𝐝 𝐏𝐨𝐥𝐢𝐜𝐞

…𝒄𝒂𝒔𝒉-𝒅𝒆𝒑𝒆𝒏𝒅𝒆𝒏𝒕 𝒄𝒐𝒎𝒎𝒖𝒏𝒊𝒕𝒊𝒆𝒔 𝒓𝒆𝒎𝒂𝒊𝒏 𝒎𝒐𝒔𝒕 𝒗𝒖𝒍𝒏𝒆𝒓𝒂𝒃𝒍𝒆 𝒅𝒆𝒔𝒑𝒊𝒕𝒆 𝒕𝒓𝒂𝒊𝒏𝒊𝒏𝒈 𝒂𝒏𝒅 𝒅𝒆𝒕𝒆𝒄𝒕𝒊𝒐𝒏 𝒔𝒚𝒔𝒕𝒆𝒎𝒔

By Zhenphen chokden

An alarming surge in counterfeit Bhutanese banknotes, particularly fake Nu. 500 bills, has stirred concern among financial institutions, law enforcement, and small business owners across the country. While the total number of incidents remains limited, the implications are significant, undermining public trust in the national currency, hurting small businesses, and highlighting critical gaps in awareness and detection.

As Bhutan’s economy slowly transitions toward digital payments, cash remains an essential part of daily transactions, especially among older citizens, rural communities, and small-scale vendors. But with counterfeit notes slipping into circulation, many are left vulnerable, relying on conventional methods or simple trust to detect fakes.

The issue has prompted renewed efforts from the Royal Monetary Authority (RMA), Bhutan’s central bank, and the Royal Bhutan Police (RBP) to protect the integrity of the Ngultrum and ensure the public is better equipped to spot and report suspicious currency. Yet, challenges remain, particularly in reaching those most at risk.

The Royal Monetary Authority of Bhutan, responsible for issuing and regulating the national currency, has taken a firm stance on counterfeit prevention. In response to recent concerns, the RMA outlined its strategy to both protect and educate the public.

“Our notes are printed using specialized materials and advanced security features that are difficult to replicate,” an RMA spokesperson explained. “From watermarks to tactile printing, the design helps users distinguish genuine notes by feel and sight.” Recognizing that public awareness is the first line of defense, the RMA has launched several campaigns across various platforms, including awareness programs for the public, especially targeting employees of commercial banks every year.

“We also air visual programs to help people visually and physically identify real currency from counterfeit notes,” the spokesperson added.

Bank employees, in particular, undergo annual training through practical sessions where they are taught to detect fake currency. Additionally, commercial banks are mandated to use sorting and counting machines equipped with counterfeit detection capabilities calibrated with RMA-provided security parameters.
Still, the RMA acknowledges that the fight against counterfeit currency is ongoing and ever-evolving. “We plan to upgrade the security features of Bhutanese banknotes further with the latest international innovations in printing technology,” the spokesperson added.

The financial institutions in the country appear to be taking different approaches to the counterfeit threat. At Bhutan National Bank (BNB), officials reported no recent cases of counterfeit currency and stressed their reliance on technology. “Each cash counter is equipped with a currency detection machine,” said a BNB representative. “These machines handle the bulk of detection work, minimizing human error.”

BNB also credited the RMA for taking the lead on public awareness efforts. “We rely on the RMA to disseminate guidance to the general public. They have the expertise and resources to do this effectively.”

The situation is slightly different at the Bank of Bhutan (BoB), where officials confirmed that counterfeit notes have been detected in circulation. “All of our branches are equipped with counterfeit detection machines, and staff are trained to use them. We do our best to stay vigilant,” said a BoB representative. However, when asked about outreach to customers and local businesses, the bank admitted to not conducting awareness activities beyond its internal staff.
This limited engagement leaves a critical information gap, one that affects small businesses the most.

For many small-scale shopkeepers and vendors, the risk posed by counterfeit currency is far more personal and financially damaging.

“In my shop, one fake note can erase half of my daily profit,” said a shop owner. “I rely on checking the watermark and holding the note against the light. But honestly, I am just using my eyes and judgment.”

Another shopkeeper admitted to taking currency at face value. “I don’t really know how to check if a note is fake unless it looks obviously wrong. No one has trained us, not from the bank, not from the government.”

The lack of official guidance is a recurring concern. “We haven’t received any posters or demonstrations. Most of the things I know, I have heard from other shopkeepers or seen on Facebook,” said one vendor. “A little bit of effort from the authorities- maybe visiting shops or giving short trainings- would make a huge difference.”

These shop owners face losses that they cannot recover. “The worst part is, we find out too late when a customer rejects the note or the bank won’t accept it. There’s no compensation for that,” another seller lamented.

Still, not all vendors are equally exposed. Some younger business owners are increasingly moving toward digital payments. “Most of my customers now use online payment- mBoB or MPay. I rarely get big notes anymore,” said Sonam Dema, a business owner. “It’s safer and easier to track.”

But this digital shift isn’t uniform. Rural areas and older generations still rely heavily on cash transactions, making them more susceptible to counterfeit scams.

The Royal Bhutan Police (RBP) confirmed that counterfeit Bhutanese currency has been detected in recent operations. Historically, Bhutanese authorities dealt mostly with fake US dollars or Indian rupees. However, the recent seizure of counterfeit Nu. 500 notes marks a shift.

“Once fake notes are seized, they are sent to the court for legal processing and disposal,” said an RBP official. “We are also reinforcing border checkpoints and patrols to reduce the inflow of counterfeit currency into the country.”
The RBP also provided insight into the people behind such activities. “Most of those caught with fake notes are from low-income or unemployed backgrounds, seeking quick profit.”

Law enforcement urges the public to remain alert and report suspicious notes. “People should take note of who gave them the currency and report it to the nearest police station or commercial bank. Timely reporting can help prevent others from being victimized,” said the official.

The coordinated efforts of the RMA, commercial banks, and police are commendable. While digital finance is growing, there are still many who continue to rely on cash, making awareness and preparedness a national priority.

“We are not asking for machines or expensive solutions,” one small business owner said. “We just want to know what to look for. That little knowledge could save us from losing an entire day’s earnings.”

The threat of counterfeit currency may not yet be widespread, but its impact is already being felt by those least equipped to absorb the loss: small shopkeepers, daily wage earners, and informal traders. While the RMA and police have laid the foundation through security features and enforcement, the next step must focus on accessibility- bringing simple, practical knowledge to the public in a language and format they can understand. Whether through local training sessions, illustrated posters, or even mobile outreach teams, prevention must reach the people where they are.

Financial security is an essential pillar of a stable economy. Protecting the value of the Ngultrum and the people who rely on it every day is not just a banking issue, but a national one. Until every citizen, from a city cashier to a rural vendor, feels confident handling their cash, Bhutan’s fight against counterfeit currency remains unfinished.