Nagad has withdrew Nagad Finance PLC’s license as a mobile financial service provider (MFS) in preparation for forming a digital bank. Although the license of Nagad Finance PLC was taken in May, the company revoked the license three months before the start of business. And through this, any organization in the financial sector of the country has withdrawn their license for the first time.
Bangladesh Bank’s Financial Institutions and Markets Department issued a notification on Tuesday (August 29) regarding the revocation of the license of Nagad Finance PLC.
On July 10, the organization applied to Bangladesh Bank seeking cancellation of the Non-Banking Financial Institution (NBFI) license. Later on August 22, Bangladesh Bank’s board meeting accepted the application to revoke the license of Nagad Finance.
Recently, Non-Banking Financial Institution License was granted to Non-Banking Financial Institutions (NFC) license to Non-Banking Finance PLC. However, before commencing business operations, Nagad Finance PLC sent a letter to the Governor of Bangladesh Bank requesting surrender of the license of the financial institution.
With the approval, Bangladesh Bank informed that Bangladesh Bank has granted ‘Nagad Finance PLC’ a financial institution license to carry out financing business in Bangladesh under the powers provided under Section 4(1) of the Financial Institutions Act, 1993.
According to the sources, Nagad is going to withdraw the micro license as it is a part of Digital Bank in the financing business and go completely into cashless financial business.