30 Banks Face QCash Disruption as Bangladesh Bank Seeks Answers
Digital transactions of 30 banks have been disrupted since October 4 after QCash began system migration without advance notice to Bangladesh Bank or customers. Bangladesh Bank says it has summoned the concerned management and instructed that card related services be restored as soon as possible.
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In a Nutshell:
- QCash, a payment switch and ATM/POS network operated by IT Consultants PLC, began system migration at 9pm on October 4, disrupting card, ATM and other digital transaction services of 30 banks.
- The disruption affects credit and prepaid cards, ATMs, cash recycling machines, POS terminals and Internet Banking Fund Transfer services.
- ITC says the migration is scheduled to continue until noon on October 10. Its Head of Planning said the work was originally scheduled for October 28 but was brought forward.
- Bangladesh Bank says neither QCash nor the affected banks informed it about the migration in advance, and customers were not given prior notice.
- The central bank has summoned the concerned management, will seek explanations from the affected banks and instructed that all card related services, including switching, resume soon.
- Transactions through other NPSB connected banks, MFS providers and payment service providers remain normal, as do BACPS, BEFTN and RTGS.
Context
The disruption began with technical development, system migration and maintenance of the QCash network. Because QCash connects 30 banks for card based transactions, the migration simultaneously affected services across those banks. Some customers have complained that their banks did not notify them even after the disruption began. In response, the affected banks have said that they themselves had received no advance notice from QCash. Bangladesh Bank spokesperson Arif Hossain Khan said maintenance of this kind should be communicated to customers and the media well in advance. He said the Governor has expressed dissatisfaction over the lack of notice and that explanations will be sought over the decision to stop important banking services without prior communication.
Why It Matters
This is primarily a coordination failure around a planned technical operation. The migration itself is not described by Bangladesh Bank as a problem with the country's wider payment system. Other national payment platforms continue to operate. The issue is that a change affecting 30 banks was carried out without the advance communication needed to prepare banks and customers for several days of disrupted services.
What We Think
QCash has disrupted the flow of money for a large number of people, affecting how they pay, withdraw and move money through their daily lives. For businesses and ordinary customers alike, several days without these services can directly disrupt payments, sales and routine transactions.