KINZANG DORJI TSHERING
Thimphu
During the National Assembly Question Hour on June 24, MP Tshering Penjor of Dewathang-Gomdar made a strong appeal to the Bhutan Development Bank Limited (BDBL), urging the bank to reconsider its decision and establish branch offices in Gomdar and Orong Gewogs under Samdrup Jongkhar Dzongkhag.
Finance Minister Lyonpo Lekey Dorji was also called upon to safeguard the rural communities that depend on these banking services.
MP Tshering Penjor emphasized that the closure of these gewog branch offices would place an undue burden on farmers, small entrepreneurs, and senior citizens.
“We understand that BDBL, like any institution, has to manage its costs. But it must not come at the cost of rural livelihoods,” he said.
His concern echoed that of residents who have voiced serious distress about the possibility of losing access to nearby financial services.
BDBL currently plays an integral role in rural financial access. It operates 35 full-service branches across Bhutan and manages 27 Gewog Field Offices (GFOs) and Farmer Outreach Banking (FOB) units.
The bank further supports 198 out of the country’s 205 gewogs through Point-of-Sale (POS) banking platforms. This widespread reach has been pivotal in delivering financial services to some of the most remote areas of the country.
Despite these achievements, BDBL has recently identified several gewog branches, including those in Gomdar and Orong, for potential closure.
The decision, according to internal deliberations, is motivated by reduced financial activity following the COVID-19 pandemic, a downturn in remittance flows, and increasing operational costs.
This has alarmed local communities, many of whom say such closures would be devastating. In phone interview with Bhutan Times, farmers from Orong and Gomdar voiced concern over the long travel required to reach alternative branches.
Many also said digital banking is not an option due to widespread digital illiteracy, especially among the elderly.
“In our village, most people don’t even use smartphones,” said Kinley Wangmo, a resident of Gomdar. “The nearest bank is several hours away. If BDBL closes here, we won’t be able to access our savings or send money to our children in school.”
MP Tshering Penjor also noted the looming commencement of the Nera Amari Hydropower Project, expected by late 2026.
He said the project is likely to increase the local population, boost economic activity, and bring in contractors and workers who will require reliable banking services.
“This is not the time to scale down services in the area. On the contrary, we should be preparing for growth,” he said.
The Nera Amari project, aligned with Bhutan’s hydropower ambitions, is expected to create employment and stimulate micro-enterprises in nearby gewogs.
Financial institutions, especially ones with a rural mandate like BDBL, will play a critical role in facilitating salaries, business loans, and other transactions during the project’s development and beyond.
The MP Tshering argued that rather than viewing these branches as a burden, BDBL should see them as strategic infrastructure for future growth.
“Bhutan’s development cannot leave rural communities behind. If these branches close now, we may regret it when demand surges in just a few years,” he said.
He also warned of the growing rural-urban divide in financial access. If the closures proceed, he said, it could undermine Bhutan’s inclusive development agenda as outlined in the 13th Five Year Plan and the Gross National Happiness philosophy.
“Financial exclusion is not just an inconvenience—it limits opportunity and deepens inequality,” he added.
In response, Finance Minister acknowledged the gravity of the situation and promised that the government would look into the matter. He stated that BDBL operates with a developmental mandate but must also address internal financial challenges.
“We want to ensure essential services continue, especially in vulnerable areas, even as we ask public enterprises to become more efficient,” he said.
Lyonpo Lekey added that his ministry, in coordination with the Royal Monetary Authority (RMA), is reviewing ways to strengthen rural financial systems without resorting to drastic measures such as branch closures.
However, he noted that BDBL operates under its own board and any such decisions ultimately rest with its executive leadership.
When MP Tshering Penjor pressed whether the Finance Ministry could issue a directive to BDBL, Lyonpo responded, “We can certainly communicate the concerns raised in Parliament and advocate on behalf of the affected communities, but we must also respect the governance structure of state-owned enterprises.”
Meanwhile, officials within BDBL, speaking on condition of anonymity, confirmed that no final decision has been made.
“We are in the evaluation stage. We know these branches are important to many people, and community feedback is being reviewed seriously,” one senior officer said.
The officer also pointed to the high operational costs associated with maintaining rural branches.
“Some of these locations see less than ten transactions a day. From a business point of view, it’s hard to justify the overhead,” he explained.
Nevertheless, the officer emphasized that BDBL is exploring alternative ways to serve these areas, possibly through mobile banking units or expanded digital literacy programs.
MP Tshering Penjor pushed back on this, stressing that any restructuring must be preceded by social impact assessments and public consultations.
“This is not just about numbers. It’s about people who depend on the bank for their daily needs, education fees, health expenses, and farm loans,” he said.
However, Civil society has also voices their concerns, The Bhutan Association of Community Development Financial Institutions (BACDFI) issued a statement last week urging BDBL to hold consultations before making any closure final.
“Any such decision should be based on comprehensive dialogue with stakeholders,” the statement read.
As the national debate intensifies, people in Gomdar and Orong remain in limbo. For many, the BDBL office is not just a place for banking—it’s a crucial part of their economic life, their communication with relatives abroad, and their link to the national economy.
Whether the BDBL Corporate Office will adjust its course following parliamentary and public pressure remains to be seen.
What is certain is that MP Tshering Penjor’s appeal has sparked a nationwide conversation about equity, development, and the responsibilities of financial institutions in Bhutan’s evolving economy.
