Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has appointed an administrator to mobile financial service provider Nagad for a one-year term, officials said.
Muhammad Badiuzzaman Dider, who served as a director of Bangladesh Bank's Chattogram office, has been appointed as the administrator, according to an internal official order, issued by the central bank on Wednesday.
Another six officials of the Bangladesh Bank (BB) have been assigned to assist the administrator for streamlining the functions of the mobile financial service (MFS) provider, they added.
Nagad started operations as a MFS in March 2019 and still the company has been running with just a temporary licence from the central bank, a rare example in the country's financial sector.
The central bank extended the tenure of the temporary licence for the seventh time for Nagad which will expire in June next year.
Since its inception, the fast-growing MFS provider has introduced itself as the "digital financial service of Bangladesh Post Office" although the post office does not have any ownership of Nagad and only gets a share of Nagad's revenue.
Actually, Nagad is running its operations as a service of Bangladesh Post Office based on a joint venture with Third Wave Technologies Limited under the Post Office (Amendment) Act, 2010 without obtaining proper licence from the central bank.
BBN/SSR/AD