Mobile banking: Why Nagad’s approval should not be scrapped, HC asks

The High Court today (November 2, 2022) questioned the legality of Nagad's mobile banking functions.

The court issued a rule asking the authorities concerned of the government and Nagad Limited to explain in four weeks why the mobile banking functions of the institution on temporary approval from Bangladesh Bank should not be declared illegal.

In the rule, the HC asked the respondents to show causes why the temporary approval from Bangladesh Bank for Nagad Limited to run mobile banking activities should not be scrapped.

Finance secretary, Bangladesh Bank governor, director general of Payment System Department of BB, director general of Bangladesh Post, and managing director of Nagad Limited have been made respondents to the rule.

The HC bench of Justice Md Mozibur Rahman Miah and Justice Kazi Md Ejarul Haque Akondo issued the rule following a writ petition filed by Supreme Court lawyers Md Abu Bokkor Siddik and Mohammad Hasan Uz Zaman.

Petitioner Hasan Uz Zaman told The Daily Star that the HC issued the rule as Nagad has no authority to run mobile banking operation under the law.

Under the Mobile Financial Services Regulation, 2022 only the banks, financial institutions or government institutions can apply to BB to run mobile banking functions, but Nagad has got approval from BB to operate mobile banking functions in violation of the regulation, he added.