Bangladesh Bank (BB) has temporarily suspended the digital banking license of Nagad, one of the country’s leading mobile financial service (MFS) providers, as the central bank initiates a thorough review of the licensing process. During a press briefing held at the BB headquarters, Governor Dr. Ahsan H Mansur confirmed the suspension, stating, “The digital banking license issued to Nagad has been placed on hold as we conduct a comprehensive review. If Nagad satisfies the regulatory requirements following the review, the license will be reinstated. Until then, it remains suspended.”
Nagad, which was awarded the digital banking license in October last year, has faced scrutiny following allegations that the company secured the license by bypassing standard regulations. Sources have claimed that the process was influenced by two high-profile figures connected to the recently ousted Awami League-led government. The central bank’s decision to suspend the license marks a significant development in Bangladesh’s financial sector, as it raises questions about the transparency of the licensing procedure. Dr. Mansur emphasized that the review would ensure compliance with BB’s strict regulatory standards, aiming to safeguard the integrity of the financial system.
Nagad has yet to issue a formal statement regarding the suspension, but financial analysts expect that the review could potentially impact its operations, depending on the outcome of the investigation. This suspension comes as Bangladesh Bank tightens oversight of the country’s digital banking and mobile financial services to ensure a more transparent and accountable financial environment. The case will continue to be monitored as more information becomes available.
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