The local currency in Bhutan is called Ngultrum and is pegged to the Indian Rupee. Tourists can withdraw their money in cash from the local ATM using EMV (Europay, Master and Visa) chip enabled cards and the same is also acceptable in big hotels and shops. There would be a transaction charge applicable while using your Credit Card. Tourists are advised to check in your their banks to confirm also.
The FOREIGN EXCHANGE REGULATIONS, 2013 of Bhutan states for people traveling in and out of Bhutan that (a) A person bringing foreign currency worth USD 10,000 or more shall declare the value in the prescribed form at the customs point of arrival or departure.; and (b) A person bringing INR exceeding 10,000/- to any country other than India or Nepal shall declare the value in the prescribed form at the customs point of arrival or departure.