Staff Reporter :
Bangladesh Bank (BB) has suspended the digital banking licence of mobile financial service (MFS) provider Nagad, following a decision to review the licensing procedures. Central Bank Governor Dr Ahsan H Mansur announced the suspension during a briefing at BB headquarters on Thursday.
“The Nagad digital banking licence has been put on hold while we conduct a thorough review,” Dr Mansur said. “If Nagad meets the requirements after the review, the licence will be reinstated. Until then, it remains suspended.”
Nagad was granted the digital banking licence by the central bank in October last year. However, there have been allegations suggesting that the licence was obtained in violation of existing regulations, possibly due to the influence of two prominent individuals connected to the recently ousted Awami League-led government.
On Wednesday, the central bank also appointed an administrator to oversee Nagad’s operations amid multiple allegations of irregularities. Muhammad Badiuzzaman Dider, previously director of BB’s Chattogram office, has been appointed as the administrator for a one-year term. To assist with the overall operations, six additional officers have been appointed.
Nagad, which launched its services in March 2019 as the digital financial arm of the Bangladesh Post Office (BPO), is currently operating under a temporary licence from Bangladesh Bank. The MFS provider has attracted over 90 million customers.