In a move aimed at modernising public financial management and streamlining international procurement, the Ministry of Finance (MoF) has issued revised guidelines governing the use of Official Credit Cards (OCC) by government agencies.
The new framework is designed to replace time-consuming payment processes with faster, digital alternatives, while also tightening controls to ensure accountability and prevent misuse.
Traditionally, government agencies have relied on lengthy bank transfer procedures -often involving Letters of Debit Advice – for international transactions. These processes, while secure, have frequently led to delays in payments for services such as airline tickets and international subscriptions, increasing administrative workload and, in some cases, costs.
Officials say the revised guidelines respond to the growing need for efficiency in an increasingly digital and interconnected environment. By allowing authorised agencies to make online payments through official credit cards, the government aims to reduce processing time, improve service delivery, and align public financial systems with modern practices.
“With these guidelines, agencies can carry out international transactions more efficiently while maintaining transparency and control,” a senior official from the Ministry said.
Under the new rules, all government agencies using OCCs for international transactions must comply with the updated procedures, which replace previous regulations in their entirety.
The Department of Treasury and Accounts (DTA) will oversee the issuance and management of the cards. Agencies are required to submit formal requests, including details of authorised cardholders and linked LC/PLC accounts. The Bank of Bhutan Limited (BoBL) will process these applications and issue cards within five working days.
Once issued, the cards will be held under the custody of the Head of Finance in each agency, who will be responsible for monitoring usage and ensuring compliance with financial rules. The DTA will maintain centralised records, including cardholder details and transaction tracking, to strengthen oversight.
The guidelines clearly restrict the use of OCCs to official purposes only. Personal expenses and cash withdrawals are strictly prohibited. Each card carries an annual spending limit of USD 10,000, aligned with the agency’s approved budget, although higher limits may be granted on a case-by-case basis upon review by the DTA.
Payments are limited to specific categories, primarily online procurement of airline tickets and international subscriptions, and must receive prior approval from the agency’s head. This targeted approach is intended to prevent misuse while still addressing key operational needs.
To enhance financial discipline, BoBL will generate monthly statements on the 15th of each month, with payments automatically debited from the agency’s LC/PLC accounts on the next working day. Agencies are required to maintain sufficient balances and reconcile all transactions within the same month, ensuring timely accounting and reducing the risk of discrepancies.
The guidelines also include provisions for administrative changes and contingencies. Any change in authorised cardholder must be formally communicated to the DTA, while refunds or cancellations – such as those related to airline bookings – will be processed through coordinated requests between the DTA and BoBL.
In line with fiscal discipline measures, agencies are advised to avoid using OCCs after June 15 until the end of the financial year to facilitate smooth closing of accounts. Costs related to card issuance, maintenance, or replacement will be borne directly by the respective agency accounts.
Officials say the reforms are not just about convenience, but also about strengthening governance. By introducing clearer rules, defined responsibilities, and digital tracking, the system is expected to improve transparency and reduce opportunities for inefficiency or misuse.
The shift comes at a time when governments worldwide are adopting digital financial tools to improve public service delivery. For Bhutan, the move signals a broader transition toward e-governance and more responsive financial systems.
“This is part of our broader effort to modernise government operations and foster a culture of efficiency and accountability,” the MoF official said.
However, the success of the new system will depend heavily on implementation. Ensuring that agencies adhere strictly to the guidelines, maintain proper documentation, and build capacity in digital financial management will be critical to achieving the intended outcomes.
The MoF has indicated that the guidelines will be subject to periodic review to adapt to evolving needs and address any operational challenges that may arise.
Sherab Dorji, Thimphu
