Know the 12 entities that have applied for digital bank licences
The applicants include both local and foreign companies.
As many as 12 domestic and foreign entities have so far submitted applications to the Bangladesh Bank for digital bank licences, with the deadline ending yesterday (2 November).
They are British Bangla Digital Bank PLC, Digital Banking of Bhutan-DK, Amar Digital Bank-22MFI, 36 Digital Bank PLC, Boost-ROBI, Amar Bank (proposed), App Bank-Farmers, Nova Digital Bank-Banglalink and Square, Moitri Digital Bank PLC, Upokari Digital Bank, Munafa Islami Digital Bank-AKIJ, and bKash Digital Bank.
Arif Hossain Khan, executive director and spokesperson of the central bank, confirmed the development today (3 November).
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According to the central bank, digital banks will enhance efficiency in the financial sector by leveraging the opportunities of the Fourth Industrial Revolution. There will be no need for separate branches, sub-branches, or ATM booths; all services will be provided through mobile and digital devices via an app-based system.
The main objectives of this initiative are to boost efficiency in line with global technological transformations in the financial sector, facilitate financing for small and medium enterprises, expand credit flow to marginalised groups, and promote sustainable economic growth through job creation.
Licenses for digital banks will be issued under the Bank Company Act of 1991, while payment services will be operated in accordance with the Bangladesh Payment and Settlement System Regulations of 2014, according to the central bank.
Earlier, in a notice issued on 15 September, the central bank had extended the deadline till 2 November, saying applications must be submitted to the Banking Regulation and Policy Department of the Bangladesh Bank with all relevant documents.
On 26 August, the Bangladesh Bank invited fresh applications for digital bank licences, revising its digital bank guidelines to prevent shell companies from sponsoring proposed digital banks.
The revised guidelines, issued on 25 August, also tighten the fit-and-proper test for sponsors, raising the paid-up capital requirement from Tk125 crore to Tk300 crore.
Besides, if an individual sponsor or the nominated representative of an institutional sponsor holds citizenship in more than one country, full details of all citizenships and related information must be provided.
Any previously renounced citizenships must also be disclosed, according to the revised guidelines.
Enterprises, companies, or individuals awaiting verdicts in any ongoing lawsuits related to loan default status will be ineligible to apply as sponsors. Banks or finance companies operating in Bangladesh are also barred from sponsoring.
Previously, in October 2023, the Bangladesh Bank granted digital banking licences to two applicants – Nagad and Kori Digital Bank – out of 52 submissions.
Nagad was backed by the same investors as Nagad Mobile Financial Services, while Kori was sponsored by ACI.
However, in August 2024, the Bangladesh Bank suspended Nagad Digital Bank's licence over allegations of corruption and dubious sponsors.
