Says BB governor

Bangladesh Bank has so far uncovered irregularities amounting to Tk 2,300 crore at the controversial digital financial service provider Nagad.

The irregularities include unauthorised creation of Tk 600 crore in e-money and misappropriation of funds intended for social safety net programmes for the poor, said BB Governor Ahsan H Mansur at a seminar yesterday on the digital financial ecosystem.

After the fall of the Awami League government on August 5 last year, the central bank has taken over the operations of Nagad, a big beneficiary of the previous regime, with the objective of improving governance and handing it over to a new investor who will operate it properly.

An audit of Nagad's past activities is underway, and once it is completed, the digital financial service provider will be offered to interested parties, Mansur said at the event jointly organised by the Metropolitan Chamber of Commerce & Industry, Dhaka and the Policy Research Institute.

"We want Nagad to become a worthy competitor to bKash. While bKash is doing a fantastic job, we need competition in the market, and Nagad is the closest contender to provide that. We are not killing Nagad; we are rebuilding it to a stronger position."

He stressed the need for dialogue with the National Board of Revenue on the overall taxation of financial intermediation.

"Why is a deposit being taxed? That is not an activity; simply keeping a deposit is not a taxable action. It actually deters financial intermediation and discourages deposits."

Bangladesh is already facing a serious problem with deposits not growing.

"Many households have complained to me, including my wife, asking why they should keep money in the bank when it's being taken away by the government in the form of taxes. Is this really the best way to collect revenue? This is an issue we need to address."