Nagad Digital Bank gets licence

FE Team | Published: June 03, 2024 22:53:08

The Bangladesh Bank has granted the final licence to Nagad Digital Bank PLC, paving the way for commencing its operations as the country's first full-fledged digital bank.
Mohammad Shahriar Siddiqui, director (BRPD) of Bangladesh Bank, handed over the copy of the digital bank licence to Tanvir A Mishuk, founder and chief executive officer (CEO) of Nagad Ltd., at the office of Bangladesh Bank's Governor Abdur Rouf Talukder on Monday, says a press release.
Once Nagad Digital Bank PLC is launched, it will function the same as all scheduled banks do.
During the handover, Deputy Director of Bangladesh Bank Nurun Nahar, Executive Director (BRPD) Saiful Islam, Additional Director (BRPD) Manirul Islam; and Nagad Ltd's Additional Managing Director Mohammad Aminul Haque, Deputy Managing Director Mohammad Anwar Hossain and Chief External Affairs Officer Sheikh Shabab Ahmed were present.
On 24 October last year, the central bank issued letters of intent to Nagad and another company for digital bank licences. Only Nagad met all the conditions within the stipulated time, leading to its receipt of the first digital bank licence. Earlier, around 500 companies, including Nagad, submitted 52 applications for securing a digital bank licence following the central bank's call for applications through its website. However, based on technical capabilities and other considerations, only two companies were granted letters of intent.
Upon receiving the digital bank licence, Tanvir A Mishuk, founder and CEO of Nagad Ltd., said, "We have been advocating for a digital bank to transform Bangladesh into a smart economy through cashless transactions. A significant portion of the country's people remains out of financial inclusion, and Nagad Digital Bank will work with them."
As part of its digital banking preparations, Nagad has achieved significant technological advancements and partnered with Silverlake Group, one of the world's leading banking solutions companies.