Is Indian currency (INR) accepted in Bhutan?

Yes. Indian Rupees are widely accepted across Bhutan.  The Bhutanese Ngultrum (BTN) is pegged to the INR at a 1:1 rate.

Important notes:

• ₹10, ₹20, ₹50, and ₹100 notes are the most commonly accepted.
• ₹500 and ₹2,000 notes are not accepted by banks in Bhutan or government agencies; however, shops and hotels usually accept them at their discretion.