Bangladesh Bank (BB) governor Dr Ahsan H Mansur on Thursday informed that the digital banking licence for Nagad Digital Bank PLC has been suspended and the central bank will review the process.
The Nagad digital banking licence has been put on hold while we conduct a thorough review. If they qualify as per the central bank’s review process, they will receive the licence, he told reporters at a press briefing at the central bank headquarters in the city.
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.”
“Our goal is to establish a robust framework for Nagad, similar to that of bKash,” he added.
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.
However, there have been allegations that the MFS service-providing entity availed the licence bypassing the existing rules following interventions by two influential persons linked to the recently ousted Awami League-led government.