Citing Nepal Rastra Bank regulations, Nepal Investment Bank limited has been found to be deducting one percent as “tax deduction at source” (TDS) charge on remittances received from Google and Facebook. The bank reportedly sent notices to customers who receive money through Google and Facebook, informing them that their payments will be stopped because of an NRB circular.
A female customer at NIBL’s New Road Branch alleged that her money was withheld by the bank for no reason. She was told to submit her PAN to the bank or her payments would not be deposited into her account. NRB officials, however, inform that they haven’t issued any such circular that allows remittance-receiving banks to deduct TDS. If any bank is doing so, it is illegal, they say.
When Nepal Pukar, a local media outlet reportedly asked Uma Shankar Adhikari from NIBL, who sent out circulars to various branches, he initially replied that it was an order from the Ministry of Finance. When told that the ministry does not send any such circulars to private banks, Adhikari pointed the finger at NRB.
Private sector banks in Nepal, all of which operate under NRB’s guidance, are not allowed to add financial burden on the customers under any pretext. However, NIBL, a reputed A-grade commercial bank with a huge customer base, has apparently been doing so.
