Nagad Ltd barred from opening TCSAs without BB's nod

Banks have been asked not to open trust cum settlement accounts (TCSAs) under Nagad Limited unless it gets approval from the postal department and the Bangladesh Bank (BB).

The central bank issued a letter to banks on September 2 in this regard.

Nagad is the brand name of the BPO's mobile financial service (MFS).

The central bank gave the decision after it had found that the mobile financial service (MFS) provider Nagad changed its owning company's name to Nagad Ltd from Third Wave Technologies Ltd several months ago.

Many MFS clients usually do not spend all of their money immediately after their funds are deposited in the accounts.

The unused funds are collectively significant, which are deposited at TCSAs.

Till now, the Bangladesh Post Office (BPO) has no share in Nagad, although it is claiming that Nagad is an entity of the BPO.

Zahidul Islam, head of public relations of Nagad, said changing the company name and opening TCSAs is an ongoing process.

The process would be completed by maintaining regulatory requirements, he added.