Other than some minor technical glitches, no major disruptions were encountered so far
On May 24, Oro Bank launched its Minimum Viable Product (MVP) as the official banking partner for Gelephu Mindfulness City (GMC). CEO Mike Kayamori expressed satisfaction with the bank’s performance, noting that while there were a few technical challenges, overall operations are running smoothly. “Everything is within expectations. There were some minor technical issues, but business has been as usual,” he shared.
One of the key initiatives to emerge from this partnership has been the Gelephu International Airport Fixed-Term Deposit, which has seen significant interest from tens of thousands of Bhutanese Living Abroad (BLA). According to Kayamori, the nation-building campaign for the airport has already raised millions of
US dollars, thanks to the investment contributions from Bhutanese overseas. In response to increasing demand, the bank extended the deadline for purchasing these fixed-term deposits until the end of March, 2025. The extension, Kayamori explained, was necessary to accommodate the growing interest and the logistical challenges involved in opening accounts and processing the deposits.
The Fixed-Term Deposit offers two investment plans: a one-time deposit with a 10-year tenure starting at USD 1,000, and a monthly plan with a two-year subscription starting at USD 250. Investors have the option to receive an annual interest rate of four percent if paid in US dollars, or a higher rate of 10 percent if they opt for Ngultrum. The CEO mentioned that the bank had to extend the original deadline due to technical difficulties in opening accounts and resolving related issues, which were more complex than initially anticipated.
The Fixed-Term Deposit program has garnered particular interest from Bhutanese communities, especially in Australia. However, not all Bhutanese abroad are able to participate due to regulatory constraints and technical challenges. Kayamori highlighted that certain countries, including Canada, as well as parts of the Middle East and Africa, are currently unable to invest due to issues with opening accounts or making international wire transfers. The CEO assured that the bank was working on solutions with its compliance team and third-party remittance partners to overcome these barriers.
Oro Bank is actively collaborating with GMC to address the high international transfer fees that can discourage potential investors. Kayamori explained that several fees are incurred during the transfer process, including those charged by the sending bank, intermediary bank, and correspondent bank. To reduce this financial burden, the bank is in discussions to subsidize or simplify the transfer process, aiming to alleviate the challenges faced by investors. However, he emphasized that no official announcement had yet been made regarding these changes, although he hoped to provide an update soon.
Importantly, Oro Bank has committed not to charge any fees for the Fixed-Term Deposit program itself. Subscribers to the program will be recognized for their contributions with a certificate of appreciation at the new Gelephu airport terminal once the project is completed.
The construction of the Gelephu International Airport is scheduled to begin this year, with an expected completion date by the end of 2029. His Majesty the King has emphasized the airport’s significance as a critical part of the GMC’s development and a strategic asset for the nation’s security and economic growth.
Through these efforts, Oro Bank, in partnership with GMC, is helping to facilitate global investments that will play a pivotal role in the development of the Gelephu International Airport, contributing to Bhutan’s national progress.
Tashi Namgyal from Thimphu