Nagad Finance gets go-ahead to run as NBFI

The Bangladesh Bank today gave go-ahead to Nagad Finance PLC to form a non-bank financial institution (NBFI).

Along with the new one, the number of NBFIs now stands at 36 in Bangladesh.

Muhammad Farid Khan will be the chairman of the proposed company.

Tanvir A Mishuk, managing director of Nagad Ltd, is also the director of the proposed NBFI.

Md Serajul Islam, spokesperson of the central bank, says that the BB board has taken decision to allow Nagad Finance to start process of getting licence with imposing some conditions.

Asked whether the new NBFI would run mobile financial service operation, he said that the issue would be decided later.

Tanvir A Mishuk, managing director of Nagad Ltd, said that Nagad Finance would operate as an independent financial institution. 

Nagad Ltd will be run as a Postal Department's mobile financial service whereas Nagad Finance will thereafter operate similarly to any other NBFI.

As a mobile financial service, Nagad Ltd is currently in partnership with several institutions, he said.

The relationship between Nagad Finance and Nagad Ltd will also remain the same, he said.