BB approves Nagad’s surrender of NBFI licence

The Bangladesh Bank on Tuesday granted Nagad’s application to surrender its non-bank financial institution (NBFI) licence.

The regulator's decision came at a board meeting.

Nagad had decided to surrender its NBFI licence to the Bangladesh Bank and change the company’s name to “Nagad Digital Bank PLC” during its special general meeting on June 26 this year.

Confirming the matter, Bangladesh Bank Executive Director and spokesperson Mezbaul Haque said, “Nagad will have to apply to us within December 31, declaring how they would run the organisation.”

Muhammad Zahidul Islam, head of Public Communications at Nagad, said, “We are now considering options, including running the company in cooperation with the Posts and Telecommunications Division.

“The company has already applied to the central bank for a digital banking licence. We are a real contender to take a digital banking licence from the Bangladesh Bank.”

Nagad Finance PLC had received primary approval from the Bangladesh Bank to operate as an NBFI in August 2022.