3. Royal Monetary Authority of Bhutan

 Royal Monetary Authority was established in the year 1982. It consists of 10 departments, each headed by a Director. Royal Monetary have three Clearing Offices in Phuntsholing, Gelephu and Mongar. They look after the check clearing facilities at their respective regions. The Governor is Mr. Daw Tenzin.

Royal Monetary Authority formulates and implements monetary policy with a view to achieving and maintaining price and financial stability. Royal Monetary Authority plays an important role in monetary and credit Management. It issue currency notes and coins in Bhutan for the purpose of directly influencing the amount of currency in circulation outside banks. It also involves the provision of central clearance facilities for interbank transactions. The RMA is the banker to the government and shall be the depository of the government.

RMA is the owner, depository and manager of the official external assets of the country, including gold and foreign currency. RMA is responsible for the Exchange Rate Policy. RMA has been mandated to be a facilitator of a modern payments and clearing system. It also implies the formulation and application of financial regulations and prudential guidelines to ensure the stability and integrity of the financial system in Bhutan. RMA exercises both the On-site and Off-site prudential supervision over the financial institutions in order to safeguard their financial soundness and to ensure they observe sound practices and compliance with the regulations issued by the RMA. It also includes the licensing of financial institutions.