'Nagad Limited' has received final approval as the first digital scheduled bank in Bangladesh due to its success in mobile financial services. Through this, Bangladesh has entered the digital banking era. On June 3, Bangladesh Bank gave final approval by adding "Nagad Limited" to the list of scheduled banks. The chief executive officer of Nagad Ltd Tanveer A Mishuk, received the approval letter from the central bank.
In the year 2019, on 26th March, the family of Nagad included seven crore customers started within a very short period of time. An average of Tk 1300 crore is transacted in cash every day with the tireless efforts of 9.13 crore counters and more than three lakh entrepreneurs. At the peak of popularity and people's trust, Nagad has already won several domestic and foreign awards.
Jahidul Islam Sajal, head of the public relations department of Nagad said, "Getting the license as the first digital bank of Bangladesh is certainly a matter of pride for Nagad. From now on, customers will no longer have to come to the bank to get banking services, instead, the bank will go hand in hand with people. You can borrow from cash without collateral at single digit interest. In addition, customers can do all the daily transactions of ordinary people, including the introduction of small savings schemes.
When asked when the digital banking operations of Nagad will start, the spokesperson of the company said, a company cannot start operations immediately after getting a license. On October 24 last year, we filled all the categories given by Bangladesh Bank and applied. During that time we have completed various activities including upgrading the network. After receiving the license this month, the software update is now underway. We hope to start working with the more than eight hundred employees and merchant bankers we have next July. Gradually it will reach the hands of the customer. However, he did not give a specific date.
The government has decided to launch digital banks in an initiative to create a 'cashless society' to reduce the use of cash and make transactions easier. Bangladesh Bank started accepting applications from those interested in starting 'Digital Bank' from June last year. On October 25 of the same year, the central bank decided to grant digital bank licenses to eight institutions out of 52 applications. Initially, the companies that got the approval of digital bank are 'Nagad', ACI's 'Kadi', a joint venture of several banks 'Digi Ten', BRAC's initiative 'Bikash' and Bank Asia's initiative 'Digital Bank Limited'. After reviewing the activities of these licensed companies, Bangladesh Bank has decided to grant licenses to three more companies.
According to the policy, Digital Bank will have a head office in Bangladesh. This office will function as the office of the bank's management and support staff. Besides, the work of receiving and settling customer complaints either physically or digitally will be done in this central office. But digital banks will not be able to provide transaction services to customers directly over the counter like conventional banks. This bank will not have its own branch, sub-branch, agent or window. It can't even have its own ATM/CDM/CRM or tangible instruments.
After opening account in digital bank, customer can transfer and use money online using any other bank or MAFS agent, ATM booth, CDM, CRM network. Money can be withdrawn from your account in the same manner. Digital banks can introduce virtual cards, QR codes or any other advanced technology-based products to facilitate transactions.
Digital Bank can give loans to customers of any level within Bangladesh; however, the scope of foreign transactions will be limited. Digital Bank can accept expatriate income or remittances and manage Foreign Currency Accounts (FC). Moreover, this bank can act as a payment or paying bank for someone. Besides, the policy has asked to give priority to lending to marginal and SME sectors.
Customers can make foreign currency transactions subject to approval for education, treatment, travel abroad or any other need. However, foreign trade loans, large and medium industries cannot finance term loans.
ZH
