Tk2,300 crore irregularities detected in Nagad: Governor
Tax hike on telecom sector could hit FDI, services, he says
Highlights
- Probe underway to uncover Nagad's irregularities
- Cenbank wants to ensure good governance in Nagad
- Subsequently new investments expected
- It aims to take the MFS provider to the top
The Bangladesh Bank has so far detected irregularities amounting to Tk2,300 crore including excess creation of e-money worth Tk600 crore in mobile financial services provider Nagad.
Ahsan H Mansur, the central bank governor, shared the information at a seminar on the digital financial ecosystem, jointly organised by the Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI) and the Policy Research Institute (PRI) in Dhaka today (12 January).
Keep updated, follow The Business Standard's Google news channel
"An investigation is ongoing to uncover irregularities in Nagad. We want to ensure good governance there. Subsequently, new investments will be invited. In the future, we aim to take Nagad to the top," he said.
Commenting on the increase in taxes in the telecom sector, the governor said, "The tax rate in our country's telecom sector is the highest in the world. We should reconsider whether it needs to be increased further, as it could reduce FDI in the telecom sector or make operators' services worse."
NPSB integration to help boost of MFS: MCCI
The MCCI at the seminar recommended integrating MFS with the NPSB System, which it said will help further boost the sector.
A presentation titled "Digital Financial Services Ecosystem: Bridging the Gaps in Bangladesh" was presented by Habibullah N Karim, founder and CEO of Technohaven Company Ltd and senior vice-president of MCCI.
He said, "We need direct integration to streamline transactions between banks and MFS. This will facilitate faster payments, reduced transfer costs, and enhanced interoperability.
The other recommendations were facilitating the launching of digital banks, enhancing internet speed outside major cities to improve access, establishing independent credit-scoring agencies and facilitating escrow systems.
Habibullah said a strong digital financial services ecosystem enhances financial inclusion, drives economic growth, improves transaction efficiency, reduces operational costs, strengthens security and fraud prevention, facilitates growth in tax collection, facilitates innovation and development, provides better data analytics for decision making, expands access to global markets, boosts consumer confidence, and encourages investment and savings.
Kamal Quadir, CEO of bKash, commenting on the positive results achieved by the mobile financial services provider through nano loans, he said, "bKash has provided nano loans to 1.6 million people so far, with 5,23,000 unique users. The recovery of these loans has been very good, with only a little over 1% being overdue, which is significantly lower compared to overdue rates of other types of loans."
Kamran T Rahman, president of MCCI, said the Bangladesh Bank, under the leadership of the governor, has been taking much-needed measures to promote digital financial inclusion and increase cybersecurity awareness.
"We appreciate their work and support these actions, as both would help ensure further discipline and security in the financial sector," he said.
To take the digital financial services ecosystem to a new level, collaboration will be the cornerstone, Kamran said.
"Bridging the gaps in it requires a concerted effort from all stakeholders — the government, private sector, financial institutions, technology providers, and civil society. By working together, we can create a regulatory framework that balances innovation with customer protection, ensuring that the financial sector continues to grow while safeguarding the interests of all users," he said.
