The political instability triggered by Sheikh Hasina's departure has had a significant impact on Nagad in this south Asian country.
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| The challenges faced by Fintech brand Nagad in Bangladesh following the mass protests. Symbolic image |
Dhaka, Bangladesh - August 23, 2024:
The Bangladesh Bank has temporarily suspended the digital banking license of Nagad, a prominent digital financial service provider. The decision was announced by the central bank's governor, Ahsan H. Mansoor, during a press briefing on Thursday.
According to the governor, Nagad's digital banking license will be reviewed, and if found to be in compliance with regulatory requirements, it may be reinstated. He emphasized that the suspension is not intended to harm Nagad's mobile financial services but rather to strengthen its operations.
As part of the oversight measures, the central bank has appointed Muhammad Badiuzzaman Didar, a Nagad employee from the Chittagong office, as cash administrator for a year. This move comes in response to Nagad's previous affiliation with the postal department, which had circulated cash.
To address allegations of money laundering and irregularities, the central bank has announced the formation of a committee to investigate the matter.
Nagad had received final approval for its digital banking license in June 2024, becoming the country's first digital bank. However, the recent suspension raises concerns about the regulatory oversight of digital financial services in Bangladesh.