Embattled Nagad now under postal department's care

Embattled digital-finance upstart Nagad is now under Bangladesh Postal Department's care with a guardian body keeping oversight on its operations.

The postal department has officially assumed responsibility of the country's one of leading mobile financial-service providers, following a stay order from the Supreme Court's Appellate Division that halted the central bank's appointment of an administrator.

In a formal office order issued Thursday, the postal department announced the formation of an eight-member oversight committee led by its Director Abu Taleb.

"The committee will supervise Nagad's operations, monitor activities at its head office and associated locations, and submit periodic reports," says an official press statement.

This move follows a long-running legal dispute over Nagad's governance.

In August 2024, Bangladesh Bank attempted to appoint an administrator to the company, a decision that was challenged in court by then-Nagad executive Md. Shafayet Alam.

While the High Court initially ruled in favour of the central bank, the Chamber Judge of the Appellate Division later issued an order of stay, effectively blocking the appointment.

Nagad operates under a unique public-private partnership model through a revenue-sharing agreement with the Bangladesh Postal Department-an arrangement in place since its inception in March 2019.

With the central bank's intervention on hold, oversight has reverted to the Postal Department, which remains Nagad's legal custodian.

According to the office order, the takeover was directed by Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser, in line with the latest Supreme Court ruling.

The newly formed committee comprises Directors Md. Abu Taleb and Md. Aminur Rahman, Postal Attaché SM Wadudul Islam, Programmer Md. Moniruzzaman, Deputy Postmaster General Sanjit Chandra Pandit, and officials Md. Shaheduzzaman Sarkar, Khandaker Shahnur Sabbir, and AKM Moniruzzaman.

Welcoming the development, newly appointed Nagad CEO Md. Shafayet Alam says, "Nagad is a financial service provider operating under a revenue-sharing agreement with the Postal Department. From the beginning, there has been widespread misinformation and confusion about our structure. This decision clarifies that, and we welcome the formation of the committee."

He adds, "We urge our customers and well-wishers not to be misled by rumours or misinformation. Nagad remains committed to delivering uninterrupted, secure, and innovative services."

Despite the regulatory tug-of-war, Nagad has continued to grow.

In March 2025, the company reported its highest-ever monthly transaction volume-Tk 340 billion-highlighting its critical role in Bangladesh's digital-finance landscape.

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