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Bangladesh Bank hands over Nagad Digital Bank PLC's licence

Bangladesh Bank hands over Nagad Digital Bank PLC's licence

The Bangladesh Bank has granted the final license to Nagad Digital Bank PLC – paving the way for commencing operations as the country's first full-fledged digital bank. In this way, Bangladesh is going to formally enter the world of digital banking. 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., on Monday (Jun 3) at the office of Bangladesh Bank's Governor Abdur Rouf Talukder. Once Nagad Digital Bank PLC is launched, it will function like the same as all scheduled banks do, said a press release.

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 among others.

On Oct 24, 2023, 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 license, 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. Getting the license for the country's first digital bank is historic. I extend my greetings to our 9.5 crore customers and everyone involved."

Regarding the preparations for launching the digital bank, Tanvir A Mishuk mentioned, "Customers will no longer need to visit banks; instead, banking services will be at their fingertips. We will offer single-digit interest loans without any collateral, introduce micro savings schemes and provide solutions to people's day-to-day transactions. We have completed all preparations and expect to launch this innovative banking service soon."

In just five years, Nagad has onboarded 9.5 crore people, showcasing newer innovations and advanced technology in mobile financial services.

The company ensures market competition by providing quality services to customers at low costs. Nagad's rapid progress has earned it recognition from Prime Minister Sheikh Hasina as the country's fastest-growing unicorn.

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.

The company is now working on credit rating capabilities using artificial intelligence. Now the wait is for the start of digital banking operations.