Samadhan Services Limited, a concern of Grameen Telecom, has at last gained approval nearly four years after submission of application on November 16, 2021, to become a payment service provider (PSP) in Bangladesh.
However, after achieving approval, Grameen Telecom will now require to meet several regulatory conditions, that include raising its paid-up capital to Tk 20 crore, to secure the final licence.
A PSP is a third-party company that allows businesses to accept electronic payments, such as credit card and debit card payments. PSPs act as intermediaries between those who make payments (consumers) and those who accept them (retailers).
The Bangladesh Bank (BB) delayed its decision in this regard until August 2024 although the company fulfilled the requirements to receive a No Objection Certificate (NOC).
BB, the central bank of the country finally granted the NOC on September 29 last year, clearing the way for Samadhan Services to secure its PSP licence, sources said.
Officials of the BB claimed that high-ups in during the rule of the past government had delayed the process in giving the approval for the Grameen Telecom, founded by Nobel Laureate Prof Muhammad Yunus, who is now chief adviser to the country's interim government.
The application from Grameen Telecom was initially reviewed by the central bank's Payment Systems Department, which found that the company had provided satisfactory documentation to move ahead with the process.
As such, the case was eventually forwarded to the-then BB Governor Rouf in December 2023, but it was not approved at that time, central bank officials said.
The proposed digital wallet company must also implement anti-money laundering and counter-terrorism financing policies, ensure customer due diligence, and comply with ICT security standards for scheduled banks in the country.
Besides, it must complete software quality and vulnerability assessments, enforce data backup and retention policies, and develop accurate network architecture and topology as stipulated.
The board of directors of Samadhan Services comprises of nine members, primarily nominated by Grameen Telecom.
A local media in its online version adds: The company's chairman, M Shahjahan, is a former managing director of Grameen Bank while its managing director, Md Ashraful Hassan, is chairman of Grameen Telecom.
Nurjahan Begum, another director nominated by Grameen Telecom, is the adviser on health and family affairs to the interim government. She is also a former managing director of Grameen Bank.
Meanwhile, Nazneen Sultana, managing director of Grameen Communications, is serving on the board as well.
Other board members include Sohel Ahmed, managing director of Grameen Shakti, and Md Nazmul Islam, managing director of Grameen Telecom.
The remaining directors -- SM Huzzatul Islam Latifee, Mahmud Hossain and Saleem Ahmad Khan -- were also nominated by Grameen Telecom.
A PSP facilitates electronic payment processes and transaction settlements through scheduled banks or financial institutions.
At present, there are eight PSPs in the country licensed by the central bank, including iPay Systems, D Money Bangladesh and Recursion FinTech.
Industry insiders said mobile network operators Robi and Banglalink are keen to enter the digital wallet business while online marketplaces like Daraz and Chaldal have already applied for PSP licenses.
