Following widespread criticism from consumers and regulators, the transaction limit of Nagad, the digital financial service provider of Bangladesh Postal Department has been reduced by the Bangladesh Bank.
According to Nagad app users, the operator has reduced its daily cash transaction limit to Tk 25000 per customer in line with the guidelines of Bangladesh Bank from its earlier limit of Tk 250,000. Accordingly, the operator has reduced its daily cash out limit.
The move is the part of Nagad effort to obtain a 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. "Our management has cut the limit of 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", the official said on condition of anonymity.
The move to cut transaction limit of Nagad has come after the refusal of most commercial banks to share cash flow with any unregulated digital financial service operator, which put tremendous pressure on Nagad business in recent months and forced it to submit application for regulatory approval.
A Bangladesh Bank official said the central bank will definitely consider Nagad's application favourably as it has brought down its transaction limit in line with BB guideline, which is necessary to keep a level playing field and restore a conducive regulatory environment in the country's financial field.
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 than the regulatory price structure followed by other MFS which may trigger risks of money laundering and destabilise 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 250,000 a day, nearly 9 times higher than the central bank's limit set for similar service operators.
Bangladesh Financial Intelligence Unit (BFIU) has requested the Bangladesh Post Office to cut down transaction limit in case of person to person dealing through its digital service - Nagad. Following the concern of Bangladesh Bank, the 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 a level playing field. 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.
Leave Your Comments