Monday 13 July 2020 ,
Latest News
Jamuna Group Chairman Nurul Islam Babul dies in hospital | Bangladesh reports 3,099 new Covid-19 cases, 39 deaths | JKG Healthcare chairman Dr Sabrina put on 3-day remand | Govt to employ 1200 teams to check sacrificial animals’ health | Dhaka eateries defy health guidelines despite virus risk | CMP deputy commissioner dies of Covid-19 | Buriganga launch capsize: Launch master of Mayur-2 held | 180 colleges, universities join lawsuit opposing new US visa policy | Coronavirus Hotline Numbers: 01944333222, 16263, 333; website: www.corona.gov.bd |
5 June, 2020 10:49:04 PM / LAST MODIFIED: 6 June, 2020 12:27:45 PM

Print

Nagad slashes transaction ceiling to get BB nod

RAFIQUL ISLAM AZAD, Dhaka
Nagad slashes transaction ceiling to get BB nod

Amid widespread criticism from consumers and regulators, Nagad, the digital financial service of Bangladesh Postal Department, has reduced its transaction limit in order to get approval of Bangladesh Bank.

According to Nagad app users, the operator has reduced its daily cash in limit from Tk 250,000 to Tk 25,000 in line with the guidelines of central bank. The operator has also reduced its daily cash out limit from Tk 500,000 to Tk 5,000.
The move is the part of Nagad effort to obtain license from Bangladesh Bank, the financial regulator of the country, a company official said noting that the operator is conducting its business with a temporary license from Bangladesh Bank.

“The Nagad management has slashed the ceiling of financial transactions in line with the guidelines of Bangladesh Bank and the process for obtaining the central bank’s approval is going on in full swing”, said a BB official on condition of anonymity.

The move to cut transaction bulk of Nagad has come after refusal of most commercial banks to share cash flow with any unregulated digital financial service operator, which mounted tremendous pressure on Nagad business in recent time, prompting it to submit application for regulatory approval.

The BB official said the central bank will definitely consider Nagad’s application favourably as it has brought down its transaction limit in line with our guideline, which is necessary to create a level playing field and restore a conducive regulatory environment in the country’s financial landscape.

Nagad, operated by a private technology firm under the Postal Act, faced widespread criticisms from different corners since its inception for its higher limit of transactions from the regulatory price structure followed by other MFS.

Such unregulated financial transaction may trigger risks of money laundering and destablise the conducive environment of the country’s fast-growing mobile financial service industry.

The big concern was that Nagad allowed a person to transact Tk 2.50 lakh a day — nearly 9 times higher than the central bank’s set limit for other similar service operators. Higher amount of transactions through such an unregulated digital service channel may pave the way for money laundering and distort the level playing field to halt the growth pace.

Bangladesh Financial Intelligence Unit (BFIU) has requested the Bangladesh Post Office to re-fix transaction limit in case of person to person dealing through its digital service-Nagad. Following the concern of Bangladesh Bank, Ministry of Finance requested the Post and Telecom Ministry to place its digital service under the central bank’s supervision.

In a market-driven economy, all the players deserve anequal and fair treatment. Mobile banking is a regulated field, so all players involved in similar business should follow the same guidelines. Nagad shouldn’t be an exception, he said.

TH

 

 

 

Comments

Poll
Today's Question »
State minister for power Nasrul Hamid yesterday said everyone to have access to electricity by June. Do you think the feat achievable by the timeframe?
 Yes
 No
 No Comment
Yes 47.3%
No 48.7%
No Comment 4.1%
Video

Copyright © All right reserved.

Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Disclaimer & Privacy Policy
....................................................
About Us
....................................................
Contact Us
....................................................
Advertisement
....................................................
Subscription

Powered by : Frog Hosting