Bangladesh Bank warns against unlicensed payment platforms, fake loan apps

Traders Union
All News
Regulators
Bangladesh Bank warns on payment apps

Highlights

Bangladesh Bank warns that fake loan apps are illegally collecting personal data and extorting borrowers by threatening to publicize private content.
The central bank identifies 22 unlicensed online payment aggregator platforms operating without required licences under Section 4(2) of the Payment and Settlement Systems Act, 2024.
Bangladesh Bank highlights regulatory risk and potential legal consequences for both operators and users of unlicensed digital lending and payment services.

Central bank notice details legal and consumer risks

As reported by The Business Standard, citing Bangladesh Bank, fake loan apps are collecting users' sensitive personal information, including photos, videos and text messages, and then using that material to threaten borrowers and demand unusually large sums of money. In a warning notice issued on 18 October, the central bank says some operators are threatening to publish private images on social media as part of extortion attempts.

The regulator says providing loans through such apps without its approval is illegal and urges the public not to borrow through them or take part in their lending activities. It adds that lending conducted without approval violates Section 15(2) of the Payment and Settlement Systems Act, 2024, while Section 37(1) sets out punishment for those offences.

Bangladesh Bank also says borrowers who register with these apps and carry out financial transactions through them could become involved in unlawful activities. It reiterates that illegal lending services run through mobile applications should be avoided.

Unlicensed platforms widen compliance concerns

In a separate warning issued on Sunday, the central bank advises the public not to conduct transactions through 22 online payment aggregator platforms that it says are operating without the required licences. The platforms named are BohudurPay, ZiniPay, PayTiller, BengaliPay, Payora BD, SohojPay BD, EasyPayWay, AK Pay, BD PAY, ShajgarPay, AsthaPay/CPay, UddoktaPay, Walletmix, BttPay, Easy Pay Automation, UniquePay BD, BD AUTO PAY, RH Pay BD, EzePay, AutoPay Ltd, Biswasto and PipraPay.

According to Bangladesh Bank, no individual, institution or company may operate a payment system or provide payment services without a licence under Section 4(2) of the Payment and Settlement Systems Act, 2024. Its Payment Systems Supervision Department identifies the 22 platforms as offering online payment aggregator services without approval, and the bank says the public should avoid using them to protect funds and reduce legal exposure.

The warning underscores growing regulatory pressure on unauthorised financial technology activity in Bangladesh's payments sector. By linking consumer protection concerns with licensing enforcement, the central bank signals that both operators and users face increasing risk when using unapproved digital finance services.

In our earlier article on Menara Asia’s Menarabena launch, we covered how the new B2B platform aims to digitise construction procurement while emphasising certification, documentation and compliance for building materials. We also noted how the initiative is supported by collaboration with CIDB-linked certification processes, highlighting that digital platforms can streamline access to information but do not replace required approvals and regulatory oversight.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.