Saturday, 30 August, 2025
Bangladesh Bank (BB) Governor Ahsan H. Mansur announced on Wednesday that the government has decided to fully privatise Nagad, the country's second-largest mobile financial services (MFS) provider, to enhance competition in the sector.
Speaking at the 'Cashless Bangladesh Summit 2025' in Dhaka, Mansur said: "The Postal Department does not have the capacity to operate Nagad. We want technology companies to come forward and invest in Nagad. We expect to find new investors within the next three to four months."
The decision follows scrutiny of Nagad's operations, which were initially launched in 2019 under the Bangladesh Post Office without a formal MFS licence from Bangladesh Bank.
Despite lacking proper authorisation, Nagad rapidly expanded its user base, partly due to exclusive government contracts mandating students to open accounts for receiving stipends. This expansion raised concerns about regulatory oversight and market fairness.
The MFS sector in Bangladesh is currently dominated by bKash, which holds a 39.9% market share, followed by Nagad at 18.1%, and Rocket at 11.7%. Governor Mansur emphasised that the privatisation aims to foster a more competitive environment, encouraging technological innovation and improved services for consumers.
The government plans to issue a formal notice inviting private investors to take over Nagad's operations. Governor Mansur indicated that a technology company would be sought as the main shareholder to ensure efficient management and alignment with the digital economy's needs.
This move is part of broader efforts to transition towards a cashless economy, aiming to reduce the annual cost of printing currency, which has been increasing by approximately 10%, or around Tk 2,000 crore, each year. The 'Cashless Bangladesh Summit 2025' gathered stakeholders from the banking and fintech sectors, regulatory bodies, and policymakers to discuss strategies for building a cashless economy. Secretary of the Information and Communication Technology Division, Shish Haider Chowdhury, also attended the event as a special guest.
As the government moves forward with privatising Nagad, the focus will be on ensuring a transparent and competitive process that aligns with the nation's goals of financial inclusion and a digital economy.
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Bangladesh Bank (BB) Governor Ahsan H. Mansur announced on Wednesday that the government has decided to fully privatise Nagad, the country's second-largest mobile financial services (MFS) provider, to enhance competition in the sector.
Speaking at the 'Cashless Bangladesh Summit 2025' in Dhaka, Mansur said: "The Postal Department does not have the capacity to operate Nagad. We want technology companies to come forward and invest in Nagad. We expect to find new investors within the next three to four months."
The decision follows scrutiny of Nagad's operations, which were initially launched in 2019 under the Bangladesh Post Office without a formal MFS licence from Bangladesh Bank.
Despite lacking proper authorisation, Nagad rapidly expanded its user base, partly due to exclusive government contracts mandating students to open accounts for receiving stipends. This expansion raised concerns about regulatory oversight and market fairness.
The MFS sector in Bangladesh is currently dominated by bKash, which holds a 39.9% market share, followed by Nagad at 18.1%, and Rocket at 11.7%. Governor Mansur emphasised that the privatisation aims to foster a more competitive environment, encouraging technological innovation and improved services for consumers.
The government plans to issue a formal notice inviting private investors to take over Nagad's operations. Governor Mansur indicated that a technology company would be sought as the main shareholder to ensure efficient management and alignment with the digital economy's needs.
This move is part of broader efforts to transition towards a cashless economy, aiming to reduce the annual cost of printing currency, which has been increasing by approximately 10%, or around Tk 2,000 crore, each year. The 'Cashless Bangladesh Summit 2025' gathered stakeholders from the banking and fintech sectors, regulatory bodies, and policymakers to discuss strategies for building a cashless economy. Secretary of the Information and Communication Technology Division, Shish Haider Chowdhury, also attended the event as a special guest.
As the government moves forward with privatising Nagad, the focus will be on ensuring a transparent and competitive process that aligns with the nation's goals of financial inclusion and a digital economy.
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