Home ›› 16 Feb 2022 ›› Front
The Bangladesh Bank on Tuesday amended its regulations on Mobile Financial Services (MFS) that made the government and financial institution-controlled entities eligible to get an MFS licence.
Earlier, the MFS licence was only open for the banks or for their subsidiaries. The latest revision of the Bangladesh Mobile Financial Services Regulations apparently paved the way for Nagad, a service of the Bangladesh Post Office, to secure the central bank licence.
Nagad MFS service initially started without taking a BB licence but it later approached the BB for endorsement.
The entity, however, is yet to operate under an interim approval of the central bank.
Nagad applied for the NOC to the BB in early 2020 after launching its operation on March 26, 2019 as a service of the Bangladesh Post Office.
The BB’s amended regulations titled “Bangladesh Mobile Financial Services (MFS) Regulations 2022” said the MFS providers in Bangladesh will be led by scheduled commercial banks or financial institutions licensed by the Bangladesh Bank or by the government entity.
In case of new applicants, scheduled commercial banks or financial institutions or the government entities have to form a subsidiary, it said.
Subject to the provision of their related Law or Act, one single bank or financial institution (FI) or the government entity, known as the parent bank or FI or the government entity, should have at least 51 per cent of the equity of MFS providing subsidiary, it said.
Subject to the provision of their concerned law or act, parent bank or FI or the government entity may conduct the operation of subsidiary alone or may take equity partners from banks, financial institutions, government entity, NGOs, investment or fintech companies (local and foreign incorporated) that have experience of working in financial market except Mobile Network Operators, according to the BB guidelines.
