Written by The Banking Post
Mobile financial service provider Nagad has received final approval from Bangladesh Bank to operate under the country’s interoperable payment system, paving the way for cross-platform digital transactions from January.
A senior official confirmed that the approval allows Nagad to join the interoperable framework, which enables instant transfers between mobile wallets, bank accounts, non-bank accounts and institutional accounts.
Bangladesh Bank rolled out the long-awaited interoperable payment system on November 1 to promote seamless digital payments and advance its cashless economy agenda. At the time, however, Nagad was excluded due to pending regulatory clearance, while market leader bKash also opted to stay out.
Ahead of the launch, bKash informed the central bank that it needed more time to ensure full security integration with the National Payment Switch Bangladesh (NPSB), seeking an extension until January 31. The move put the regulator in a difficult position, as bKash dominates the MFS market.
Central bank officials have stressed that the success of interoperability hinges on the participation of major players. Without large providers, the system risks limited adoption despite its technical readiness.
Nagad has been operating under Bangladesh Bank’s administration since August last year following political changes. Its earlier exclusion from interoperability had raised questions about regulatory oversight, as the service continued operations without full approval.
With Nagad now cleared, Bangladesh Bank has formally expanded NPSB-based interoperability by updating its regulatory framework to cover banks, MFS providers, microfinance institutions and payment service operators. The system supports real-time clearing and multi-party settlement.
Still, uptake has been slower than expected. Providers remain cautious over integration costs and uncertain commercial returns, even as the regulator pushes for wider adoption to deepen digital transactions across the economy.
