The Bangladesh Bank’s project of the National Payment Switch is hanging in the balance due to a dispute between the central bank and the system implementing company Singapore-based Infotech Global Pte. Due to the dispute, 11 commercial banks, which have completed all preparations to be included in the NPSB, are yet to join with the central bank project, a BB official told New Age on Sunday.
He said the central bank had formally introduced the NPSB on December 27 in a bid to monitor and regulate all electronic and internet-based transactions of the banking sector through a common platform while four banks had initially joined the project.
Besides, the inter-bank transaction through automated teller machine, Point-on-sale, Internet banking and mobile banking will be also conducted under the NPSB, he said.
He blamed Infotech Global Pte for not completing the linkage between the NBSB and the concerned commercial banks after taking away 84 per cent of a total bill of $5 million from the BB.
The four banks, which initially joined the NPSB, are — Southeast Bank, Pubali Bank, Dutch-Bangla Bank and BRAC Bank.
The four banks are now conducting a limited operation under the NPSB, such as cash withdrawal, cash inquiry and mini statement for ATM transaction although the BB earlier said the transaction of the POS, Kiosk, Mobile Banking and Internet Banking would be routed through the project.
But the BB has virtually failed to start in full-fledged operation of the NPSB although a central bank circular on December 24, 2012 claimed that the installation of necessary hardware and software of the project was completed successfully at the BB premises.
On the other hand, 11 banks completed their preparation to be included in the NPSB in May this year, but they failed to connect with the project due to the incompletion situation of the project.
The 11 banks are – Jamuna Bank, Social Islami Bank, BASIC Bank, Al-Arafah Bank, The City Bank, Eastern Bank, Prime Bank, Islami Bank Bangladesh, Mutual Trust Bank, Standard Chartered Bank and Shajalal Islami Bank.
The BB took the initiative, under the Central Bank Strengthening Project financed by the World Bank, to develop the electronic payment infrastructure in the country, facilitate electronic commerce and thereby reduce dependence on cash transactions substantially, the official said.
In January 2012, the BB had signed the agreement with the company to supply software, hardware and support services under the procurement notice for the NPSB.
As per agreement, the Infotech had to implement all types of required hardware, software and networking by 2012 as the tenure of the CBSP was scheduled to end this year.
For this reason, the BB launched the NPSB on December 27, 2012 despite the incomplete project, the official said.
Under the circumstances, the BB took a plan to complete the remaining task of the project by June 2013, he said.
According to the agreement, the Infotech have to provide all sorts of services until 2015.
But the company has claimed the remaining bill of the project before completing the NPSB, the BB official said.
Eventually, a dispute has emerged between the BB and the Infotech regarding the bill payment issue, after which the whole project has plunged into a stagnant situation, he said.
The BB earlier issued a termination letter to the Infotech on May 26, 2013 informing to sever the tie with the company, he said.
But the company requested the BB not to take such decision saying that it would complete the remaining task of the project.
The BB has proposed a new memorandum of understanding to the company on September 3, but the Infotech denied it, it was learnt.
Another BB official said that the central bank might take legal action against the company if it persists in ‘breaching’ the agreement.
The central bank will take a final decision by next month and it will complete the required task of the project by March, 2014, he said.
The BB will appoint new vendor to complete the remaining task of the NPSB if required, he said.
-With New Age input
