Nagad gets BB nod as NBFI

Business Desk :
Nagad, a mobile financial service (MFS) of the Bangladesh Post Office (BPO), got approval from the Bangladesh Bank (BB) as a non-bank financial institution (NBFI) on Sunday.
But this is a separate organisation where the BPO has no stake, as it did not have equity participation.
“The BB board in its meeting on Sunday approved Nagad as an NBFI,” said one central banker.
Now, Nagad will form a subsidiary under the new NBFI to get a full licence from the BB for its operation, he added.
NBFIs are financial institutions, which are controlled by the BB under the Financial Institution Act 1993. Their paid-up capital is Tk 1.0 billion and authorised capital Tk 5.0 billion. Now, 35 such FIs are operating in Bangladesh.
Earlier, the BB board gave a letter of intent against Nagad Finance PLC.
Muhammad Farid Khan, vice-chairman of Summit Group, will be the chairman of the NBFI, to be headquartered in the city’s Tejgaon area.
Tanvir A Mishuk, managing director of Nagad, is also a director of the proposed NBFI.
Nagad Finance PLC will promote its products and services through Nagad Limited.
Jointly, Nagad Finance PLC and Nagad Limited will work for raising digital financial inclusion of the underserved people.