This can actually be good news for businesses and people willing to invest in online marketing.
NRB has declared that the use of an alternative channel of payment for advertising in social media is illegal. The same circular also mentions that inbound remittance from these channels outside of banking channels is illegal. This has created Havoc in social media. But let me tell you, this is not as bad as it sounds.
Online Marketing on facebook is Legal Now !
While NRB has declared the use of alternative methods as illegal, it has also mentioned that you can use Facebook for marketing as long as a banking channel is involved. Before this circular, the government had never addressed these forms of marketing. But now, it has officially been stated that businesses can use social media for their marketing.
Banks are authorized to handle the outbound payment for social media
This notice has authorized banks to handle the outbound payments for Facebook and YouTube. That day is not far, where banks will open a different department for social media marketing. There will be fees involved, but this will also make things easy for business houses and individuals.
No more fishy exchanges
There are so many groups on Facebook which have been selling currencies at different rates than as indicated by NRB. People have been forced to buy credits on PayPal or skrill on the black market. These credits are supposedly used in social media. This is exactly how hundi works and we all know that hundi is illegal. There had been several incidents of frauds and scams in these groups. Now, the government will take action and these will be eradicated.
What about inbound remittance from social medias?
This is another good news in the NRB Circular. Every country tries its best to increase inbound remittance. The reserve of foreign currency in NRB is around 9.4 billion USD. Since Nepal is import dependant economy, these foreign reserves play important roles. For this reason, the government will encourage inbound remittance. The earning made on social media are no different than that of laborers working in the Gulf. The difference being, these neo-labors work online and bring remittance. The government cannot tax the inbound remittance made from social media except for the income tax, which we all have to pay no matter what.
Time to show Facebook Expenses on your accounts
Expenses made on Facebook through fishy channels had always been hard to accommodate on accounting. These transactions included payments made through credits bought on the black market, hundi, or that random person you met on Facebook. Now you can make a payment against the bank and book it as an expense on your accounts. That’s a piece of good news.
Thank god ! they did not ban Facebook marketing
A circular issued a year ago banned all forms of cryptocurrency and several miners and mining companies were sent behind the bars. It was definitely a wrong move and NRB was poorly criticized for the same. This time NRB has shown a lot of maturity by forcing people to make payments only through the banking channels. This is a mature and well-thought move when viewed from both technical and economic perspectives.