Bangladesh Bank has announced new rules 2022 that government institutions and non-bank financial institutions will be able to provide mobile financial services (MFS) from now on. This opens up all avenues for approving ‘Nagad’ financial services.
The new rules were published on Tuesday (February 15) this week by amending and adding the 2018 rules.
According to the previous rules, those who provide MFS services have to form affiliates. Associates must hold 51% of the shares in the hands of parent banks, financial institutions and government agencies. The paid up capital of this affiliate should be Tk 45 crore.
From here, ‘Nagad’ is a service of the government’s postal department. Nagad was repeatedly deprived of permanent approval as an affiliate of a government organization. They have been operating since April 2020 with temporary approval of nagad. With the issuance of the new rules, there is no longer any obstacle to get permanent approval of nagad.