Domestic Payment Systems
1. Mobile Banking
With the launching of the first mobile banking application by Bank of Bhutan Limited (BOBL) on May 15, 2015, mobile banking has emerged as a powerful tool in promoting financial inclusion in Bhutan. The interbank fund transfer system is managed by the Royal Monetary Authority of Bhutan by interconnecting all the member banks.
In continuous efforts to innovate retail payment systems, the RMA in partnership with the member banks implemented payment overlay services for real-time account validation and health check of a beneficiary bank before confirming the payments via Mobile and QR code. With these new services, a customer will now be able to see the beneficiary account name if the beneficiary bank system is up and running.
Mobile Banking Service Providers
| Sl. No | Bank | Mobile Application |
|---|---|---|
| 1 | Bank of Bhutan Limited | mBoB |
| 2 | Bhutan National Bank Limited | mPay |
| 3 | T Bank Limited | TPAY |
| 4 | Bhutan Development Bank Limited | ePay |
| 5 | Druk PNB Bank Limited | DrukPay |
| 6 | Digital Kidu Limited | DK Bank |
With its widespread adoption and accessibility, mobile banking has revolutionized the way people manage their finances. One of the key advantages of mobile banking is its convenience. With just a few taps on their smartphones, Bhutanese citizens can access the following features:
- Fund Transfer (intra and interbank)
- Card Payment
- Loan Repayment
- NPPF
- Account Opening
- Cash In and Cash Out
- Recharge
- Balance Enquiry
- Donation
- Entertainment
- Add money
- Various Bill Payment
- Card Less Cash Withdrawal
- Insurance
- Flight Payment
2. Bhutan QR Code
With the growing popularity of QR Code payments, RMA, in collaboration with the financial institutions, has enabled payments using Bhutan Quick Response Code. Bhutan QR Code payment is one of the smart digital banking initiatives. One primary advantage of using National QR codes for merchant payments in emerging markets is their accessibility.
Bhutan QR Code is a unique platform to facilitate low-cost interoperability of QR Code payments whereby the customers can make payments by scanning QR codes of different banks and have the amounts transferred directly from their accounts without the need of additional hardware. Launched in March 2020, the QR Code interoperability project aims to encourage digital payments and enhance financial inclusion, particularly amid the challenges posed by the Covid-19 pandemic. Presently, all the commercial banks in Bhutan have successfully deployed the interoperable Bhutan QR Code payments via the RMA’s common QR infrastructure.
3. Cheque Truncation System (CTS)
The RMA initiated the first clearing house in Thimphu in 1997, and later, in the year 2000, an additional Regional Clearing House was set up in Phuntsholing. In 2007, with support from the Asian Development Bank (ADB), the RMA introduced the Cheque Truncation System (CTS), replacing traditional paper-based cheque clearing with image-based processing and settlement, resulting in a substantial enhancement in efficiency. Furthermore, in 2017, the CTS underwent additional refinements to ensure prompt reconciliation and settlement. This improved process eliminated delays linked to physical cheque movement, as bank branches nationwide began scanning interbank cheques, reducing settlement time to T+1.
CTS caters to P2P, P2B, B2B, P2M, and M2M. At present, BoBL, BNBL, BDBL, Druk PNB Bank Ltd., and T Bank Ltd. actively participate in the CTS.
4. ATM (Automated Teller Machine)
ATM stands for Automated Teller Machine. It's a device that allows people to perform various banking transactions without the need for a bank teller. These transactions include withdrawing cash, checking an account balance, depositing money, transferring funds between accounts at any time.
2 December 2011: BFS ATM was launched by Hon'ble Prime Minister of Bhutan. Ever since the introduction, BFS has facilitated interoperability for the ATMs in the country.
Types of cards:
| Sl. No | Bank | Card Issued |
|---|---|---|
| 1 | Bank of Bhutan Limited | Domestic Debit Card, Domestic Credit Card, Proprietary Debit Card, Fuel Card and Corporate Credit Card. |
| 2 | Bhutan National Bank Limited | Debit Card |
| 3 | T Bank Limited | Debit Card & Proprietary Debit Card |
| 4 | Bhutan Development Bank Limited | Domestic Card |
| 5 | Druk PNB Bank Limited | Maestro Debit Card |
5. PoS (Point of Sale)
It is a payment service where merchants use to make sales in person. Through this service, you become a part of the completely new concept of a cashless society in the kingdom. With just a swipe of your card (any card issued by a Bhutanese bank, or any VISA branded card) to make the payments online in real-time
12 July 2012: BFS POS was launched by the Hon'ble Finance Minister. The POS service addition to BFS has facilitated interoperability of the entire POS network in the country.
Types of Cards accepted by PoS
- All Domestic Bank Cards issued by member banks.
- Fuel Card.
- International cards (details available under the international payments)
6. Internet Banking
Internet banking is a banking service provided by the financial institutions that allows customers to conduct various financial transactions over the internet and There are two types of internet banking services:
- Retail banking which was launched on 1st April, 2016 and
- Corporate banking which was launched on 24th August, 2023.
Through internet banking, the services are:
- Check account statement, investments, account details online
- Transfer funds to your own accounts, third party accounts and inter-banks fund transfer within Bhutan
- Cheque Book Management
- New Cheque Book Request
- Initiate Loan repayment online
- Standing Instruction creation
- Bill Payments
- Bulk Payments
7. Bhutan Inter-Bank Real Time Fund Transfer (BIRT)
BIRT-Fund Transfer (Bhutan Inter-Bank Real Time Fund Transfer), formerly known as the GIFT system, was inaugurated on 22 July, 2019 with the primary goal of streamlining real-time fund transfers between different banks. The system encompasses three distinct transaction types: RTGS, BITS, and BULK.
- RTGS (Real Time Gross Settlement): RTGS facilitates the instantaneous transfer of substantial value funds exceeding Nu. 1 million. This system ensures the real-time transfer of individual payments, providing a seamless experience at both the customer and bank levels.
- BITS (Batched Settlement Service): BITS serves as a fund transfer system tailored for retail transactions involving small value funds below Nu. 1 million. In this setup, the receiving bank and the beneficiary receive credit at 30-minute intervals from the initiation time, creating an efficient and periodic settlement process.
- BULK: The BULK transaction type empowers the transfer of funds to multiple beneficiaries from a single remitter account. This system operates on a real-time gross settlement basis at the Royal Monetary Authority (RMA), ensuring swift and secure transactions for both remitters and beneficiaries.
Individuals, Business, Corporates and Government entities can avail the services through bank/Branch. The implementation of BIRT-Fund Transfer marks a significant leap forward in enhancing the efficiency and speed of inter-bank fund transfers in Bhutan, offering diverse options to cater to various transaction needs.
8. e-Wallets
With the widespread use of smartphones, e-wallets are becoming accessible to a broader segment of the population, allowing more people to participate in the digital economy. e-Wallets are virtual wallets through which users can recharge phone numbers, make utility payments, transfer funds and store money for future online/offline transactions. Its main objective is to achieve greater financial inclusion, promote cashless transactions and to bring every citizen into the financial ecosystem.
Presently, there are four e-wallets service providers in Bhutan.
| Sl. No | Name of Service Provider | Application Name |
|---|---|---|
| 1 | Bhutan Telecom Limited | B-Ngul |
| 2 | Tashi InfoComm Private Limited | eTeeru |
| 3 | Bank of Bhutan Limited | goBoB |
| 4 | Bhutan National Bank Limited | MyPay |
The main aim is to provide financial services to the unbanked populations without the need for a bank account. e-Wallets contribute to the reduction of cash dependence, promoting a more digital and cashless economy. This can lead to increased efficiency in financial transactions.
9. Domestic Payment gateway
The Domestic Payment Gateway in Bhutan was launched on January 27th, 2016, providing a secure platform for registered merchants to accept payments from their customers through websites or applications. This gateway allows for instant, secure, and real-time transactions between various parties, including Citizens-to-Government, Citizens-to-Business, and Business-to-Business transactions. Its scope encompasses services like G2C transactions, e-commerce payments, and entertainment service payments.
The gateway is designed with robust encryption and security features to ensure that sensitive financial data is transmitted and stored securely.
If you wish to apply and register as a Domestic PG merchant, the form can be downloaded from the RMA website.