Due to a lack of exchange offices in the border region, the Bhutanese pay in Ngultrum.
"I accept it because of compulsion. Here it is available in the denominations of 100, 500, 50, 10, 20 and five," said Pradip Yadav, an Indian rickshaw-puller.
Experts felt that the tendency would not lead to capital formation, expansion of business putting the locals in a disadvantageous position.
"These currencies are not acceptable apart from those (border) areas. So in that way capital formation can't occur. So further expansion of business or setting up of industry can't occur. It can be used only for trade and that too strictly with Bhutan," said Gautam Kumar Mazumdar, a professor of economics.
"Indians in that way are in disadvantage but still it is going on. Why sellers are accepting Bhutanese currencies and why Bhutanese are refusing to accept Indian currencies, that means our dependence on them, on their product is certainly more stronger," he added.
Bhutan is bound on three sides by the Indian State of Sikkim, West Bengal, Assam and Arunachal Pradesh. (ANI)