The Bangladesh Bank (BB) has recently made a big recommendation about Nagad, a popular mobile money service in Bangladesh. The BB wants Nagad to become a part of a state-owned (public) bank. This suggestion comes as Nagad has faced some issues and controversies lately. Nagad has been very popular, helping millions of people, especially those who receive government payments like stipends or allowances. It quickly grew into one of the biggest mobile financial services in the country. However, Nagad started operating without a full license from the Bangladesh Bank and has been running on temporary approvals for a long time. There have also been concerns about how it manages money and some allegations of financial irregularities. The main idea behind the Bangladesh Bank’s recommendation is to make Nagad stronger and more secure. By becoming a subsidiary of a public bank, Nagad would get the strong support and oversight of a well-established financial institution. This could help bring in new investments and ensure that Nagad follows all the rules and regulations properly. It would also help restore trust among customers and the government, especially when it comes to handling important payments.The Bangladesh Bank thinks that if a public bank takes over the management of Nagad for a short period, it can solve existing issues and subsequently attract a long-term strategic investor to support its further growth. This move is aimed at ensuring the stability and continued growth of mobile financial services in Bangladesh, which are crucial for our digital economy. However, making this change will also have its challenges. Bringing a private-sector-like operation under a public bank means that there might be some changes in how Nagad works every day. It would need to fit into the structure and rules of the state-owned bank, which could be different from how it operated before. Also, there’s the big task of making sure all the processes are transparent and that any past issues are completely resolved. The goal is to make sure that people continue to benefit from mobile money services without any worries about their money or personal information. Ultimately, this recommendation by the Bangladesh Bank is about strengthening our financial system. By putting Nagad under the wing of a public bank, Bangladesh is working to make sure that mobile financial services are not just popular, but also safe, reliable, and contribute positively to our nation’s economic development. It’s a step towards building a more secure and trusted digital financial landscape for everyone in Bangladesh.
