Cash vs Card vs INR

Bhutan is a cash economy — even with growing card acceptance, you'll want local currency for 70%+ of purchases. Add the INR-at-par rule and USD for the SDF, and you have three currencies to think about. This page gives you a single decision grid.

Decision grid

Purchase	Nu	INR	USD	Card	Best
SDF to operator	✓	?	✓	✗	USD preferred
Tariff balance	✓	?	✓	?	USD or wire
Hotel (3–4 star)	✓	✓	?	✓ +3%	Card OK
Hotel (5-star)	✓	✓	✓	✓	Card OK
Restaurant	✓	✓	✗	✓ upscale	Nu or INR
Café / bakery	✓	✓	✗	rare	Nu or INR
Handicraft shop	✓	✓	✓	some	USD for big; Nu for small
Supermarket	✓	✓	✗	rare	Nu or INR
Local taxi	✓	✓	✗	✗	Nu or INR
Fuel	✓	✓	✗	BOB pumps	Nu or INR
Dzong entry	✓	?	✓	✗	Nu (small fee)
Trekking permit	✓	✗	✓	✗	USD via operator
Tipping	✓	✓	✗	✗	Nu small notes
Tshechu entry	✓	?	✓	rare	Nu (often free)

Legend: ✓ = reliably accepted · ? = sometimes · ✗ = refused

What this solves

Most "Bhutan money" guides say "carry cash." True but incomplete. With INR at par, an Indian traveler literally doesn't need to convert. A western traveler needs a Nu strategy, plus USD backup, plus INR optional. This page makes the strategy explicit.

How to use this grid

If your home currency is INR, you can skip the ATM entirely.
If you have USD bank cards, withdraw Nu at one BoB ATM and you're set for most purchases.
Carry $200–300 USD for SDF, tariffs, large handicrafts, dzong donations.

Limitations

Vendor policy can change. Some handicraft shops now take cards; some restaurants stopped.
Card surcharge varies 2–5% — usually waived over Nu 5,000 in upscale places.
INR ₹500 notes may be refused (RBI cleanliness rules); bring smaller denominations.

FAQ

Is it rude to pay in INR?

No. It's legal tender at par. Most vendors prefer it slightly because they don't need to count it.

Will my Visa/Mastercard work?

In upscale hotels and restaurants, yes. In markets and small shops, no.

Sources

Royal Monetary Authority of Bhutan — peg and acceptance policy