Dhaka, Bangladesh (BBN)- The central bank has cancelled ‘no-objection certificate’ of the Prime Bank’s mobile financial services (MFS) – Easy Cash – for embezzlement of Tk 157.80 million from employees alleged by the bank’s service provider.
The Bangladesh Bank (BB), the country’s central bank, issued a letter in this connection on Wednesday to managing director of Prime Bank saying that the reply of the bank against the central bank’s show-cause notice was not acceptable.
In April last, the BB issued the show-cause notice to the managing director of Prime Bank asking him to explain why the central bank would not cancel the no-objection certificate for alleged embezzlement of fund for the job seekers by the bank appointed service provider.
 “We’ve cancelled the certificate on the basis of our investigation report,” Das Gupta Asim Kumar, executive director of the BB, told BBN in Dhaka.
He also said the Prime Bank Limited has failed to comply with rules and regulations in this connection properly.
The Prime Bank earlier appointed a solution provider named SMG Infocom Limited to operate its (bank) MFS and the solution provider recruited around 2,500 people to operate the service.
SMG Infocom had published media advertisements on the recruitment, using the Prime Bank’s logo.
“So, Prime Bank is also responsible for such irregularities conducted by SMG Infocom,” another BB official said.
He also said SMG Infocom had closed its operation immediately after the recruitment but it had not refund the undertaking-money to their employees.
“We’ve planned to introduce the MFS with selecting other genuine service provider,” Prime Bank Managing Director Md Ehsan Khasru said, adding that the Prime Bank earlier cancelled deal with the SMG Infocom.

BBN/SSR/AD-07Aug14-11:44 am (BST)