Samadhan Services Limited, a concern of Grameen Telecom, has at last gained ground in its effort to become a payment service provider (PSP) in Bangladesh.

Authorities of Samadhan Services had first applied to the country's central bank for a PSP licence on November 16, 2021.

However, the Bangladesh Bank delayed its decision in this regard until August 2024 although the company fulfilled the requirements to receive a No Objection Certificate (NOC).

The central bank finally granted the NOC on September 29 last year, clearing the way for Samadhan Services to secure its PSP licence, according to officials associated with the process.

Officials of the Bangladesh Bank claimed that high-ups, former governor Abdur Rouf Talukder in particular, had purposefully delayed the process.

They said the delay was enforced as an extension of former prime minister Sheikh Hasina's alleged animosity towards Grameen Telecom and its founder, Nobel Laureate Prof Muhammad Yunus, who is now chief adviser to the country's interim government.

Rouf had resigned as Bangladesh Bank governor soon after the Awami League government was ousted by a mass uprising on August 5 last year.

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 Bangladesh Bank Governor Rouf in December 2023. But it was not approved at that time, central bank officials said.

The Daily Star tried to reach Rouf over phone to comment on the matter, but his phone number was found switched off.

Md Nazmul Islam, managing director of Grameen Telecom and a director of Samadhan Services, told this newspaper that they are yet to obtain the licence despite securing the NOC.

"The central bank withheld the NOC, but we do not know why," he said.

"Still, we are relieved to have finally received it," Islam said, adding that Samadhan Services is preparing to enter the local market soon as a digital payment service provider.

BANGLDESH BANK'S REQUIREMENTS

The Bangladesh Bank issued a one-year NOC to Samadhan Services, with the company now required to meet several regulatory conditions to secure the final licence.

For example, the company has to raise its paid-up capital to Tk 20 crore and maintain it at this level.

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.

WHO'S BEHIND SAMADHAN SERVICES?

The board of directors of Samadhan Services comprises of nine members, primarily nominated by Grameen Telecom.

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.