The Royal Monetary Authority (RMA) on September 9, 2025, convened the first meeting of the governing body, National Financial Inclusion Steering Committee (NFISC), underscoring Bhutan’s renewed commitment to advancing financial inclusion. The meeting follows the revitalization of the Financial Inclusion National Action Plan (FINAP) 2019–2023 and sets the stage for the country’s next strategic roadmap, FINAP 2025–2030.
Chaired by the officiating Governor of the RMA, the session brought together chief executives from banks, insurance companies, the stock exchange, the credit information bureau, and microfinance institutions. Members reviewed the progress made under FINAP 2019–2023, deliberated on fund utilization, and discussed priorities for the upcoming plan, which aims to accelerate inclusive and equitable access to quality financial services nationwide.
“Financial inclusion remains central to Bhutan’s development agenda, ensuring that every citizen has the opportunity to save, borrow, invest, and protect themselves against risks,” an official from RMA reiterated.
Dubbed as a national priority, key agendas include expanding access to digital financial services, strengthening financial literacy, and enabling inclusive alternative financing schemes. These measures are seen as critical to building a more resilient economy aligned with Bhutan’s development philosophy of Gross National Happiness.
The Steering Committee also endorsed the revised Terms of Reference (ToR) for the NFIS Governance Committee, intended to strengthen coordination and ensure effective implementation of the forthcoming action plan.
Despite significant progress, Bhutan continues to face challenges in deepening financial inclusion.
According to recent reports, financial account ownership in Bhutan remains relatively low, highlighting a critical gap in the country’s journey toward inclusive economic growth. Only 34% of adults currently hold a formal bank account, and the figures are even more stark for women, where ownership drops to just 28%. This gender disparity underscores persistent barriers—including social norms, limited financial literacy, and challenges in accessing banking infrastructure—that constrain women’s full participation in the formal financial system.
While a majority of the population (76%) maintains savings accounts, a significant portion of these accounts are underutilized or hold minimal balances, reflecting a cautious approach to formal finance and a reliance on informal savings mechanisms. Even more striking is the limited access to credit: just over one-fifth of adults have the ability to borrow through formal channels. This constraint restricts opportunities for entrepreneurship, investment in education, home ownership, and other wealth-building activities, particularly among underserved groups.
Financial experts note that these gaps represent both a challenge and an opportunity. Expanding access to banking services, digital wallets, and microfinance products could dramatically enhance financial empowerment, stimulate domestic economic activity, and support Bhutan’s broader goals of inclusive growth and Gross National Happiness. Targeted interventions—such as digital banking initiatives, women-focused lending programs, and community-based financial literacy campaigns—are seen as essential to bridging these gaps and ensuring that all segments of society can participate meaningfully in the country’s economic transformation.
Persistent barriers include urban–rural and gender gaps, limited financial literacy, a lack of tailored financial products, and weak consumer protection frameworks.
The World Bank has emphasized that reforms in Bhutan’s financial sector—particularly those harnessing digital technology—will be critical to expanding access, promoting collateral-free lending, and modernizing payment systems.
In the meantime, Bhutan is leveraging its high levels of digital connectivity—95% of households own a smartphone, and nearly all have internet and mobile access—to drive financial inclusion.
FintechBhutan, launched in 2020, supports innovation through regulatory sandboxes.
The National Digital Identity (NDI) project, integrated into digital wallets, now enables remote account opening in partnership with major banks, expanding access for rural and underserved populations.
Likewise, Bhutan has also emerged as a global innovator in digital finance.
In May 2025, the country launched the world’s first national crypto tourism payment system, allowing tourists to pay with over 100 crypto currencies. More than 100 merchants, including rural vendors, are already onboard.
Leveraging clean hydropower, Bhutan is investing in energy-efficient crypto mining, with revenues helping to finance government expenditure and diversify the economy.
In partnership with Ripple, the RMA is piloting a central bank digital currency to enhance financial inclusion, simplify payments, and support cross-border interoperability.
Meanwhile, the Royal Monetary Authority (RMA), through its Financial Inclusion Secretariat, reaffirmed its commitment to working hand in hand with government agencies, financial institutions, and development partners to drive the national financial inclusion agenda. Officials emphasized that the next phase of Bhutan’s financial inclusion journey will go beyond addressing existing gaps in access to basic financial services. The ambition is to position Bhutan as a pioneer in digital financial innovation, leveraging technology to expand affordable and reliable services across the country.
This approach reflects a broader vision: ensuring that inclusive growth and shared prosperity remain central to Bhutan’s economic transformation. By harnessing digital platforms, mobile solutions, and innovative payment systems, the RMA aims to bring underserved communities—particularly rural populations, women, and youth—more fully into the financial system. At the same time, regulatory frameworks and capacity-building initiatives are being strengthened to balance innovation with stability and consumer protection.
If executed effectively, analysts note, these measures could enable Bhutan not only to close the financial inclusion gap but also to set a benchmark for small economies worldwide seeking to integrate technology, sustainability, and inclusivity into their growth models.
Tashi Namgyal from Thimphu
