Bangladesh Bank on Wednesday cancelled the mobile banking licence of Prime Bank Ltd as the central bank found Prime responsible for the swindling of of up to Tk 30 crore from 2,500 job seekers by the bank-appointed mobile banking service solution provider SMG Infocom. The BB issued a letter to managing director of Prime Bank saying that the reply of the bank against the central bank’s show-cause notice was not acceptable.
Against the backdrop, the central bank withdrew the No-Objection Certificate for the mobile financial service of Prime Bank in accordance with Article 7.1.8 under the BB Guidelines on Mobile Financial Services, according to the letter.
The BB issued a show-cause notice to Prime Bank on April 7 asking it to explain why the central bank would not cancel no-objection certificate it had provided the bank to run mobile financial services for misappropriating a huge amount of money from 2,500 job seekers.
A BB official told New Age on Wednesday that the central bank did not accept the reply of Prime Bank as Prime could not avoid the responsibility of SMG Infocom’s irregularities.
The BB earlier conducted an inspection of the mobile financial services of Prime Bank where the central bank had unearthed that SMG Infocom recruited around 2,500 people to operate mobile banking services of Prime Bank.
According to the inspection report, SMG Infocom, appointed by Prime Bank to operate its mobile banking Easy Cash, received Tk 25 crore to Tk 30 crore as undertaking money from the successful candidates for the job, using tricks.
The report said that SMG Infocom had closed its operation immediately after the recruitment leaving 2,500 people jobless but it had not refunded the undertaking money to those who were appointed.
SMG Infocom received between Tk 50,000 and Tk 2,50,000 from each person as undertaking money.
The solution provider had assured the jobseekers that it would refund the undertaking money after their recruitment, the official said.
But SMG Infocom did not return the undertaking money to the job-seekers, violating the commitment and it also closed its operation.
The BB issued another letter to Prime Bank on May 14 asking it to refund the undertaking money of the jobseekers by May 30, but the bank is yet to repay the money.
The BB letter said that the stance of Prime Bank in this case was not correct as it had said that SMG Infocom did not use the Prime Bank’s logo.
The BB letter said, ‘Prime Bank earlier issued two separate letters to the BB in which the bank admitted that it was informed about the SMG Infocom’s recruitment from across the country after receiving undertaking money from the job-seekers.’
Detective Branch of Police also informed Prime Bank about the SMG Infocom’s fraudulent act, the letter said.
Prime Bank could prevent the fraudulent act if it had taken immediate measures by taking help from the central bank and law enforcement agencies, it said.
‘But Prime Bank failed to take measure in this regard. So the bank could not deny the responsibility of SMG Infocom’s improper action,’ the letter said.
Another BB official said that the job-seekers should go to court to get back their undertaking money as the central bank has completed its job by canceling the licence of Prime Bank’s mobile banking service.
No prime bank officials could be reached over phone for comments on Wednesday despite repeated attempts.
-With New Age input
