BB disconnects DGePay over security concerns

Bangladesh Bank has disconnected the online payment gateway DGePay from the National Payment Switch Bangladesh (NPSB) after an inspection found security lapses, including server access from India.

Speaking to reporters, Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan said protecting the confidentiality of citizens' data remains a top priority. Operating critical financial infrastructure from outside the country poses a direct security risk, he added.

DGePay Managing Director and Chief Executive Officer Rashed Mahmud acknowledged that the disconnection took effect on 29 October, although he said he was informed of the decision on 1 November. 

He explained that the central bank raised concerns over staffing, including the lack of a dedicated database administrator, alongside development work managed by an India-based team.

Defending the arrangement, Rashed Mahmud said foreign developers were granted access solely for development purposes and maintained that no security breaches had occurred. He added that discussions with the central bank were ongoing to resolve the compliance issues.

Licensed as a Payment System Operator (PSO) in August 2023, DGePay operates as a white-label merchant acquirer under Dipon Group and serves 600 to 1,000 merchants.

Source: UNB