Kathmandu. A few months ago, Laxmi Sunrise Bank had directed to discontinue the digital banking service called ‘Orange Next’, which has been operating for about one and a half years. Following the directive of the Rastra Bank, the bank has suspended the service.

Nepal Rastra Bank (NRB) has said that there is no legal provision to operate such a service. Spokesperson of Nepal Rastra Bank Kiran Pandit said that the bank has been operating the service without taking permission from Nepal Rastra Bank.

“Laxmi Sunrise Bank operated without taking permission from The Nepal Rastra Bank( NRB),” pandit said, adding, “Rastra Bank had issued directives a few months ago to close down the bank due to lack of regulatory arrangements in this regard.” ’

He said that a law is needed to operate such services. He said that now the law of digital banking will be made and we will move forward. According to him, the Rastra Bank is studying the issue of digital banking. At present, the Rastra Bank has not cooperated with the government’s concept of Digital Nepal by closing Orange Next.

Nepal Rastra Bank (NRB) in its monetary policy for the current fiscal year has stated that legal and procedural arrangements will be put in place for the establishment of ‘Neo Bank’ to expand financial access as mentioned in the budget statement of the Government of Nepal for the fiscal year 2082/83 BS.

Similarly, the government has stated in point 327 of the budget statement for the current fiscal year that the rural economy will be developed by expanding the reach of banks and financial institutions in remote areas. Digital, mobile and branchless banking services will be expanded.”

The central bank, which has taken the policy to advance legal and procedural arrangements in the monetary policy, has discontinued the Orange Next service introduced by Laxmi Sunrise Bank to facilitate the policy taken by the Rastra Bank. Experts argue that in order to fully implement the concept of Digital Nepal, such services in operation should be facilitated by making necessary laws and other companies who want to provide such services should also be facilitated.

According to Laxmi Sunrise Bank, more than 65,000 customers are currently doing banking transactions through online accounts on the mobile app called Orange Next. According to the bank, they have deposits of Rs 170 million. NRB spokesperson Pandit said that laxmi sunrise bank has been instructed to transfer the accounts opened under Orange Next to other accounts. However, there is a technical problem in moving the accounts immediately.

With the mobile app launched by Laxmi Sunrise Bank, all the work could be done from home. As stated by the government in the budget, it would have helped develop the rural economy by expanding the reach of banks and financial institutions in remote areas. But the Rastra Bank has stopped it.