The Bangladesh government has assumed control of Nagad, the country’s prominent mobile financial service provider, following concerns over operational irregularities. The Bangladesh Post Office (BPO), which owns Nagad, has taken over the organisation, according to Bangladesh Bank Governor Ahsan H Mansur. At a press briefing on 22nd August, Mansur stated, “Since Nagad was operated as a postal department entity with the BPO holding a large stake, the government has taken charge on behalf of the BPO.” He also mentioned that the digital bank’s licensing process would be thoroughly reviewed, ensuring only eligible entities retain their licences.
This move comes a day after the Bangladesh Bank (BB) appointed an administrator to Nagad due to mounting allegations of misconduct in its operations. The newly appointed administrator, Badiuzzaman Dider, announced the dissolution of Nagad’s current board and the abolition of the CEO position. “Nagad has been operating without an official mobile financial service (MFS) licence, under temporary approval from the postal department and Bangladesh Bank,” Dider said. He urged the public not to be swayed by rumours surrounding Nagad, stressing that any harm to the service could negatively impact the entire financial ecosystem.
Nagad has been a significant player in the digital financial market since its launch in March 2019 as a BPO-affiliated service. It has been running on a temporary MFS licence, which has been renewed seven times, the latest extension expiring in June 2025. Questions surrounding the ownership of Nagad and its financial practices have prompted this intervention. Mansur noted that the company had been operating under interim approval and was found to have created more money than it held in deposits—a practice that should not have occurred.
“The government’s immediate aim is to protect customers’ interests and ensure Nagad’s compliance with regulatory standards. The long-term goal is to prevent its closure and restructure it into a transparent and competitive entity,” Mansur explained. The central bank plans to audit Nagad to evaluate its financial practices. Mansur emphasized the government’s commitment to fair competition in the mobile financial sector, stressing that Nagad’s previous advantages, such as exclusive rights to government disbursements, were not market-based decisions. He concluded by affirming that there would be no immediate changes to Nagad’s operations, fees, or commissions, and the service will continue uninterrupted as it undergoes a restructuring process.
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