5 digital banks, including bKash and Robi-backed ventures, get BB approval
The decision was taken at a meeting of the central bank's board of directors today.
The Bangladesh Bank has given initial approval to five proposed digital banks, including ventures backed by bKash, Robi and Banglalink, after selecting them from 12 applicants in the latest licensing round.
The decision was taken at a meeting of the central bank's board of directors today (24 September), chaired by Bangladesh Bank Governor Md Mostaqur Rahman. Four of the five entities were selected from the 12 new applicants, while Kori Digital Bank, which had received an earlier approval, was also issued a fresh Letter of Intent (LoI).
The five proposed digital banks are DK Digital Bank, backed by Bhutan's DK Bank; bKash Digital Bank, promoted by bKash shareholders; Nova Digital Bank, backed by Banglalink's parent company VEON and Square Group; Boost Digital Bank, promoted by Robi's parent company Axiata; and Kori Digital Bank.
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An LoI is not a final banking licence. The selected entities will first have to establish the required technological infrastructure and meet other regulatory conditions before the Bangladesh Bank conducts the necessary assessment and considers granting full licences.
Bangladesh Bank spokesperson Arief Hossain Khan said the operations of digital banks would be different from those of conventional banks, with the new institutions expected to reach customers who remain underserved by traditional banking channels.
He said digital banks would focus on smaller borrowers and would not be allowed to provide large loans or conduct foreign trade operations.
Kori Digital Bank had previously received an LoI but did not complete the requirements for a full licence within the stipulated period. The central bank has now issued a fresh LoI to the institution, allowing it to proceed under the current process.
Second round of digital bank licensing
The Bangladesh Bank invited fresh applications for digital bank licences after suspending the earlier licensing process following the change of government in 2024.
Twelve entities applied in the latest round. They are British Bangla Digital Bank, Digital Banking of Bhutan-DK, Amar Digital Bank-22 MFI, 36 Digital Bank, Boost-Robi, Amar Bank, App Bank-Farmers, Nova Digital Bank-Banglalink and Square, Maitri Digital Bank, Upokari Digital Bank, Munafa Islami Digital Bank-Akij, and bKash Digital Bank.
In the first licensing round in 2023, the Bangladesh Bank received applications from more than 50 entities and subsequently issued LoIs to Nagad Digital Bank and Kori Digital Bank. Nagad later received a final licence in 2024, but its licence was subsequently suspended. Kori did not receive a final licence.
The central bank revised its digital bank guidelines in August 2025, raising the minimum paid-up capital requirement from Tk125 crore to Tk300 crore for new digital banks.
The licences are issued under the Bank Companies Act, 1991, while payment services are governed by the Bangladesh Payment and Settlement Systems Regulations, 2014.
Branchless banking model
Under Bangladesh Bank's framework, digital banks will operate without physical branches, sub-branches or over-the-counter services. They will maintain a headquarters but provide banking services through digital platforms, primarily mobile applications and other digital devices.
Customers will be able to access services around the clock, while digital banks may offer virtual cards, QR codes and other technology-based products. They will not be allowed to issue physical cards.
Customers may use the ATM and agent networks of other banks and service providers for certain transactions.
Digital banks will also face restrictions on lending and trade-related services. They will not be allowed to open letters of credit or provide loans to large and medium-sized industries, with lending focused on smaller borrowers.
Each digital bank will also be required to launch an initial public offering within five years of receiving its licence. The requirement was included in the original digital bank framework and remains part of the licensing conditions.
Financial inclusion and cybersecurity
Former Bangladesh Bank governor and economist Ahsan H Mansur said the central bank's criteria-based approach to selecting digital banks is a positive development, but the institutions should now move quickly to implement their plans.
He said digital banking services would be available to everyone, but the main objective should be to bring people at the margins of the financial system into formal banking.
Mansur said digital banks could particularly benefit small and medium-sized enterprises, while cybersecurity and customer financial awareness would require greater attention.
He suggested that financial awareness programmes could be expanded through schools to help customers understand digital banking and protect themselves from financial risks.
