‘Orange Next’ Banking Service Shuts Down Due to Lack of Cooperation From NRB

Kathmandu: Laxmi Sunrise Bank has shut down ‘Orange Next’, a new technical banking concept developed by F1 Soft, due to regulatory non-cooperation. Nepal Rastra Bank had written to Laxmi Bank three months ago directing it to close the Orange Next service.

The bank has started sending SMS alerts to participating customers asking them not to deposit any new funds. It said the service has been shut down until further notice, and no new deposits have been accepted since 26 November.

The bank has requested customers to use the balance in Orange Next by 1 December or transfer it to their bank accounts as soon as possible.

The central bank had directed the closure of the service launched by Laxmi Sunrise Bank in the last week of Shrawan, saying traditional banking services should be made hassle-free and simple through the use of technology.

Orange Next allowed users to access various banking services through mobile phones, from opening an account to completing other banking processes. It was known as a Neo Banking service, where all facilities are fully digital and mobile-based. Orange Next aimed to make banking services easy through a mobile app.

Orange Next was developed by Phone Next under the F1 Soft Group over a period of three years and had been operated by Laxmi Bank since January 2024. It was designed to allow users to start and complete banking transactions entirely from their mobile phones. Customers did not need to visit the bank to open an account, fill out KYC, or start mobile banking, as everything could be done digitally.

Laxmi Bank had asked F1 Soft Group to design a separate system so the product could run independently, as it was not possible under the existing banking infrastructure. F1 Soft then created a different setup and provided it to the bank. However, Nepal Rastra Bank instructed the bank to suspend the service and shift customers to the existing banking system, saying that a regulatory framework for new platforms like Orange Next had not yet been developed.

Because Laxmi Bank was introducing a new product, Orange Next had started with a small setup. In the absence of clear regulations, the bank had adopted this approach to avoid large upfront investments.

About 30,000 to 35,000 customers who had updated their KYC were using Orange Next. More than 60,000 users had downloaded the app and used the service in some form. It is estimated that more than Rs 150 million is held in the accounts operated through Orange Next.

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