The Bangladesh Bank on Thursday extended Nagad’s temporary clearance. However, it stipulated that one of the conditions for its non-objection certificate be the adjustment of bank loans secured by the mobile financial service operator in violation of BB norms.
On the same day, the BB sent a letter to the Bangladesh Post Office in this regard.
ACCORDING TO THE LETTER, the MFS operator is prohibited from adding new merchants until the loans are adjusted.
The temporary approval was granted on Thursday for six months, and the MFS operator will be required to finish the entire process of becoming a government subsidiary.
Nagad violated the Bangladesh Bank’s (BB) guidelines by utilizing customers’ money to get bank loans worth more than Tk 500 crore.
According to the BB, Nagad took the loans without the central bank or the government’s permission.
Source: New Age