Picture yourself trekking Bhutan’s emerald trails, prayer flags fluttering in the mountain breeze, and stopping at a roadside stall for butter tea. Instead of fumbling with unfamiliar bills, you’ll soon get acquainted with the Ngultrum (BTN) — Bhutan’s official currency. Pegged to the Indian Rupee since 1974, this distinctive currency keeps the rhythm of daily life moving, from temple offerings to market haggling. Understanding it makes your journey through Bhutan smoother and more immersive.

A Brief History of the Ngultrum

The Ngultrum was officially introduced in 1974, during the reign of Bhutan’s Third King, Jigme Dorji Wangchuck, as part of the country’s modernisation. It replaced the Indian Rupee as Bhutan’s sole legal tender, though the Rupee continues to circulate freely due to the fixed 1:1 peg. By 1982, the establishment of the Royal Monetary Authority of Bhutan (RMA) gave the country its own central bank to issue and regulate the Ngultrum. This marked a step towards financial sovereignty, while still maintaining strong economic ties with India.

Bhutan Banknotes and Coins

Today, Ngultrum banknotes are issued in denominations of 1, 5, 10, 20, 50, 100, 200, 500, and 1000 BTN. Each note features important cultural, historical, or architectural motifs — from majestic dzongs to national emblems — making them a pocket-sized showcase of Bhutanese identity. For example:

• 1 Nu: Wangdue Phodrang Dzong

• 5 Nu: Paro Rinpung Dzong

• 10 Nu: Tashichho Dzong (Thimphu)

• 20 Nu: Punakha Dzong

• 50 Nu: Memorial Chorten in Thimphu

• 1000 Nu: Portrait of the Fourth King, Jigme Singye Wangchuck

Coins are less common but exist in chetrum values (1, 5, 10, 25, 50 chetrum) and a 1 Ngultrum coin. One Ngultrum equals 100 chetrum.

Security Features

The RMA incorporates strong anti-counterfeiting measures:

• Watermarks that become visible when held against light

• Microtext and intaglio (raised) printing

• Latent images and optically variable inks on higher denominations
  Unlike some countries, Bhutan has not yet introduced polymer banknotes or QR-coded bills.

Peg to the Indian Rupee

Since 1974, the Ngultrum has been pegged 1:1 with the Indian Rupee. This means 1 BTN equals 1 INR, and Indian Rupee notes (up to ₹100) are accepted across Bhutan. Higher denominations (₹500 and ₹2000) are not accepted. This peg gives Bhutan economic stability, especially in trade and tourism, while ensuring visitors from India can use familiar currency with ease.

Exchange and Value

For travellers, exchanging currency is straightforward. You can swap US Dollars, Euros, or Pounds for Ngultrum at banks, authorised money changers, or major hotels in towns like Thimphu and Paro. ATMs are available in urban areas and accept international Visa and Mastercard, but you should not rely on them as they do not always work. Always keep your exchange receipts if you plan to reconvert Ngultrum before leaving.

In terms of international value, BTN tracks exactly with INR. 1 USD is roughly 83 BTN/INR, though this fluctuates slightly with global forex markets.

Daily Use in Bhutan

Bhutan is still a cash-centric society. You’ll need Ngultrum (or Indian Rupees) for everyday expenses like street food (20–50 Nu for momos), taxi rides, or temple donations. Credit cards are increasingly accepted at larger hotels and shops in Thimphu, Paro, and Punakha, but not in smaller villages. Mobile payment apps exist but are not commonly used by tourists.

Tipping and Customs

Tipping is not widespread in Bhutanese culture. In local restaurants, it isn’t expected, but in hotels and guided tours, a 5–10% tip is appreciated. Temple donations are voluntary and often small — a gesture of respect rather than obligation.

Traveller Tips and Pitfalls

• Bring enough cash: Especially for treks or rural stays where ATMs don’t exist.

• Don’t rely on high-value INR notes: ₹500 and ₹2000 notes are not accepted.

• Exchange at banks or hotels: Avoid black-market changers — it’s illegal and risky.

• Factor in the Sustainable Development Fee (SDF): Tourists (except Indians) must pay USD 100 per person per night, which cannot be paid in BTN. This is a separate cost to budget for.

FAQs

What is the Ngultrum (BTN)?
It’s Bhutan’s official currency, introduced in 1974 and pegged 1:1 with the Indian Rupee.

Where can I exchange currency?
At Paro Airport, major banks, authorised money changers, or large hotels in Thimphu and Paro. Carry USD, EUR, or GBP for the best rates.

Are ATMs available?
Yes, mainly in Thimphu, Paro, and Punakha. They accept Visa/Mastercard, but fees apply, and rural areas are cash-only.

Can I use Indian Rupees?
Yes, but only notes of ₹100 and below. Larger denominations are not accepted.

What denominations exist?
Banknotes: 1, 5, 10, 20, 50, 100, 200, 500, 1000 BTN. Coins: 1 BTN and chetrum units.