Bangladesh Bank awaits Payment Act to act against Nagad

The Bangladesh Bank awaits the interim government’s implementation of the Payment and Settlement System Act, 2024, to address alleged irregularities by Nagad Ltd. Despite entering the market in 2019 as part of the Bangladesh Post Office, Nagad operates under a temporary license. In August, the central bank appointed an administrator under the act, which lacks legal effect due to a missing gazette. The government plans to issue the gazette with retrospective effect. Allegations against Nagad include a Tk 600 crore e-money deficit and unauthorized withdrawals of Tk 1,711 crore from government accounts. A forensic audit has been planned, and foreign auditors have been invited for tenders. Meanwhile, the High Court imposed a status quo on Nagad's activities following a writ petition challenging the administrator's appointment.