Nagad digital bank license held up to review its work: BB Gov

Nagad Logo of Post Office digital transaction.

Dhaka, Aug 22 — Bangladesh Bank Governor Dr. Ahsan H Mansur has said that the digital banking license for Mobile Financial Service (MFS) provider Nagad has been temporarily adjourned pending a review of its activities.

“The digital banking license process for Nagad will be re-evaluated. If Nagad meets the eligibility criteria following this review, the license will be reinstated,” he told a press briefing at the central bank’s board room on Thursday.

“It is not our intention to harm Nagad’s services; rather, we aim to strengthen them,” he clarified.

On Wednesday, the central bank appointed Muhammad Badiuzzaman Didar, previously a director at the BB’s Chattogram office, as the new administrator for Nagad.

Dr Mansur explained, “We have taken this institution under the Postal Department as they were presenting Nagad as an entity of the department.”

He added, “Our goal is to establish a robust framework for Nagad, similar to that of bKash.”

The Governor also indicated that the new management will investigate allegations of irregularities.

On June 3, the central bank granted final approval to Nagad Digital Bank, making it Bangladesh’s first digital bank. Nagad first sought a digital banking license from Bangladesh Bank in 2020.

According to a notification signed by Bangladesh Bank Deputy Governor Nurun Nahar, "'Nagad Digital Bank Plc' has been officially listed as a Scheduled Bank effective June 3, 2024." - UNB