NBFIs, govt entities can now also extend mobile financial services

Non-bank financial institutions and government entities can now extend mobile financial services (MFS) along with banks, according to a Bangladesh Bank circular released today.

They, however, will have to form subsidiaries to provide MFS, according to the central bank guidelines.

The parent banks, NBFIs and the government entities will have to provide at least 51 per cent of the equity of MFS providing subsidiary.

The parent entities will also have majority in the board of directors along with controlling shares.

The minimum paid-up capital requirement of a subsidiary model-based MFS provider is Tk 45 crore.

The banks, which are now running MFS operations with approval of BB will continue with their existing structure without forming subsidiary company.

But, they will also be allowed to form subsidiaries.

The latest central bank guidelines will help the Bangladesh Post Office (BPO) to take licence for its subsidiary, which is now running MFS under the brand name of Nagad, a central bank official said.