Bangladesh Bank Cuts DigiPay Off from NPSB over Security Risks, Including Server Access from India

Bangladesh Bank has identified several security risks at the online payment gateway DigiPay, including access to the company's server from India. Considering those risks, the central bank has disconnected DigiPay from the National Payment Switch Bangladesh (NPSB).

As a result, DigiPay's transactions through the NPSB have stopped. Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan shared the information with the media on Wednesday (November 4).

Arif Hossain Khan said that during checks, several security flaws were found in DigiPay's management and technological operations, and after reviewing those flaws the decision was taken to disconnect the company from the NPSB.

He said cyber security and protecting the privacy of citizens' data are priorities for Bangladesh Bank, and that if an allegation arises that an institution is being operated from outside Bangladesh, the central bank treats it as a risk to data privacy and security.

The central bank spokesperson added that necessary action would be taken over the allegations against DigiPay, but that completing the investigation takes time, so disconnecting the company from the NPSB was taken as a preliminary step.

DigiPay's authorities, on the other hand, have objected to Bangladesh Bank's decision. The company claims the disconnection decision was taken without any discussion with them.

DigiPay said that although its transactions through the NPSB have stopped, its other services outside the NPSB are continuing as before.

The NPSB is the country's interbank digital payment network run by Bangladesh Bank, through which banks and financial institutions get instant electronic transaction facilities.

DigiPay provides various digital payment services including point of sale (POS), QR code and e-commerce payments. The company received a Payment System Operator (PSO) licence from Bangladesh Bank in August 2023.