Photo: Collected
The Bangladesh Bank has granted the final licence to Nagad Digital Bank PLC – paving the way for commencing operations as the country's first full-fledged digital bank.
With this, Bangladesh is going to formally enter the world of digital banking, Nagad said in a media release on Monday (3 June).
Mohammad Shahriar Siddiqui, director (BRPD) of the Bangladesh Bank, handed over a 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.
Among others, 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 also present.
Once Nagad Digital Bank PLC is launched, it will function the same as all scheduled banks do, reads the release.
On 24 October 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.
Based on technical capabilities and other considerations, however, only two companies were granted letters of intent.
Nagad founder and CEO Tanvir A Mishuk 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 remain out of financial inclusion, and Nagad Digital Bank will work with them. Getting the licence 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."
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