New investors for Nagad likely in three to four months: Governor
Notice seeking new investors to be published within next few days, he says
A public notice will soon be issued to attract new investors for the mobile financial services (MFS) provider Nagad as part of its planned privatisation, according to Bangladesh Bank Governor Ahsan H Mansur.
"The Postal Department does not have the capacity to operate Nagad. We want tech companies to come forward and invest in Nagad. We expect to find new investors within the next three to four months," the governor said while addressing the "Cashless Bangladesh Summit 2025" in Dhaka today.
The event was jointly organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) and Mastercard at the Pan Pacific Sonargaon Hotel.
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Mansur said the decision to bring in investors had been taken at the highest level, and that a formal notice would be published within the next few days.
Earlier, in an interview with TBS, the governor alleged that Nagad had been operating illegally for a long time. "The main violation is this: the post office is not a financial institution. It simply doesn't have the capacity to operate a tech platform like Nagad."
Finance Adviser Salehuddin Ahmed on a separate occasion also said Nagad will be restructured and handed over to a separate independent board. "It will no longer be operated by the Bangladesh Bank or the Postal Department – only the independent board will run it."
The governor at the Summit highlighted the growing reliance on cash. "The cost of printing cash is increasing by 10%, or around Tk2,000 crore, every year. If this continues, how can this be a digital economy?"
To promote digital transactions, the governor announced several upcoming initiatives, like developing an inter-operable system for digital payments, fully digitalising agent banking to enable agents to not only collect deposits but also disburse loans and considering a 12-month loan facility to provide low-cost smartphones to the public, aiming for every person in the country to own one.
The summit brought together stakeholders from the banking and fintech sectors, regulatory bodies, and policymakers to discuss the prospects, challenges, and necessary steps for building a cashless economy.
Shish Haider Chowdhury, secretary of the Information and Communication Technology Division, attended the event as a special guest.
In the first session, Bangladesh Policy Exchange Chairman and CEO Masrur Riaz delivered a keynote speech on "Building a cashless economy: critical role of fintechs." He said Bangladesh could learn from the digital transformation experiences of countries such as China, India and Sweden.
Masrur suggested that the government and regulators enable wholesale and corporate digital payments, support innovation, and invest in infrastructure to strengthen the digital transaction ecosystem.
The panel included Md Sharafat Ullah Khan, director of the Payment Systems Department at Bangladesh Bank; Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank; Ali Ahmmed, chief commercial officer of bKash; Zakia Sultana, director at Mastercard Bangladesh; and Adnan Imtiaz Halim, chairman and Group CEO of Sheba Platform.
A cashless society
The final session of the Summit featured a keynote by Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD) and a discussion on "Regulatory Reforms & Policy Roadmap for a Cashless Bangladesh."
Debapriya proposed that the Bangladesh Bank form a dedicated task force to build a cashless society and suggested that the concept of a cashless society should be included in political parties' election manifestos.
He also cautioned against a "cashless economy" becoming an "income-less economy," stressing that a rise in income is essential for a successful transition. He welcomed the decision to increase the paid-up capital of digital banks to Tk300 crore.
The panel discussion included Md Khairuzzaman Mozumder, secretary of the Finance Division; Md Abdur Rahman Khan, secretary of the Internal Resources Division and chairman of the NBR; Md Habibur Rahman, deputy governor of Bangladesh Bank; Mashrur Arefin, managing director and CEO of City Bank and chairman of The Association of Bankers, Bangladesh; and Anita Ghazi Rahman, founder and managing partner of The Legal Circle.
The session underscored the importance of progressive reforms, regulatory sandboxes, and supporting tax frameworks to balance innovation with consumer protection, laying the foundation for Bangladesh to strengthen its digital finance ecosystem and position itself as a regional leader in cashless innovation.
