The Royal Monetary Authority of Bhutan (RMA) was established under the Royal Monetary Authority of Bhutan Act, passed by the 56th session of the National Assembly of Bhutan in 1982. Since then, certain provisions of the Act have been partially amended by the Financial Institutions Act of Bhutan 1992.
According to the RMA Act, the RMA is a body corporate with perpetual succession and a common seal, and has the power “to enter into contracts and issue obligations, to sue and to be sued in its own name, to acquire, hold and dispose of movable and immovable property and to pledge and mortgage the same, and to exercise all powers granted to it by the provisions of the Act. Therefore, the RMA is a special jurisdical person that is separate and distinct from the Government. In other words, unlike government ministries, departments or agencies, the RMA is solely responsible for its actions, and any act on its part cannot be construed as being an act of the government.
Against an authorized capital of Nu.100 million, the paid-up portion of the RMA’s capital is presently Nu. 4,400,000, which in accordance with the provisions of the Act, is held exclusively by the Royal Government. The paid-up capital can be increased by such further amounts as may be proposed by the Board of Directors and approved by the Government.
The RMA’s purposes as specified in Part II, Section 6 of the RMA Act are:-
- to regulate the availabilty of money and its international exchange; to promote monetary stability;
- to supervise and regulate banks and other financial institutions; and
- to promote credit and exchange conditions, and a sound financial structure conducive to the balanced growth of the economy.