Dhaka, June 21 -- The Bangladesh Bank has recommended immediate revoking of the interim approval for the scam-hit mobile financial service (MFS)-provider Nagad and its restructuring as a subsidiary of a state-owned bank for the time being.

If restructured, Bangladesh Bank and the designated state-run bank could jointly manage Nagad temporarily before handing it over to a strategic investor -- paving the way for large-scale investment and sustainable operations.

In a letter to Finance Adviser Dr Salehuddin Ahmed, BB Governor Dr Ahsan H Mansur highlighted the urgent need for action in light of allegations involving fund misappropriation and governance failures at Nagad.

"It seems appropriate to cancel the interim approval of Nagad immedi...