Nagad Ltd barred from opening trust-cum settlement account without approval

September 7, 2021

The Bangladesh Bank has asked banks not to open any trust-cum settlement account (TCSAs) under the name of Nagad Ltd. The central bank issued a letter to banks on September 2 asking them not to open such accounts in the name of Nagad Ltd without its prior approval and the Bangladesh Post Office (BPO). Nagad is the brand name of the BPO’s mobile financial service (MFS). Many MFS clients usually do not spend all of their money immediately after they funds are deposited in the accounts. The unused funds are collectively significant, which are deposited at TCSAs. Third Wave Technologies Ltd, which is the master agent and technological and logistic support provider to the BPO to operate the MFS, earlier opened TCSAs under its own name. But Third Wave has recently renamed as Nagad Ltd. A BB official said that Third Wave had recently wanted to change the name of the holder of TCSA in the name of Nagad Ltd and requested banks eventually. “Some banks wanted our directive whether they should change the name of holder of TCSAs. We asked them to refrain from doing so as Post office is yet to inform us. Post office should inform us,” he said. In March 2019, Nagad started as MFS of the BPO, and it has since been operated by Third Wave Technologies Ltd, which renamed itself as Nagad Ltd in February this year, allegedly without informing the BPO. Contacted, Muhammad Zahidul Islam, head of Public Relation of Nagad, said, changing the name of the company and opening TCSAs is an ongoing process. Such processes will be completed by maintaining regulatory requirements, he added.

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