12 firms vie for digital bank licences as application window closes
A total of 12 domestic and foreign entities have applied to the Bangladesh Bank for digital bank licences as the submission deadline ended on Sunday, November 2.
The strong response highlights growing interest in Bangladesh’s emerging digital financial services sector.
According to Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan, the applicants include: 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.
Revised guidelines, stricter eligibility
Bangladesh Bank had earlier extended the application deadline to November 2 through a notice on September 15.
It also revised the Digital Bank Guidelines 2024, tightening regulatory standards to prevent the formation of shell companies and to ensure transparency in ownership structures.
The revised framework increased the minimum paid-up capital requirement from Tk 125 crore to Tk 300 crore, while introducing a more rigorous fit-and-proper test for sponsors.
Applicants must now disclose all details of dual or multiple citizenships, including previously renounced ones.
Individuals or organisations with pending lawsuits related to loan defaults are disqualified, and existing banks or financial institutions operating in Bangladesh cannot act as sponsors.
Push for fully digital banking
Bangladesh Bank said the digital banking initiative is part of its broader effort to harness the opportunities of the fourth industrial revolution to modernise the financial system.
Digital banks will operate entirely online – without branches, sub-branches, or ATMs – providing all services through mobile apps and digital platforms. The model aims to ensure low-cost, easily accessible financial services, particularly for small and medium enterprises (SMEs), marginalized communities, and rural populations.
“The digital banking framework is designed to promote inclusive growth, innovation, and employment by extending formal financial services to underserved groups,” said a senior BB official.
Previous licences and regulatory caution
The central bank had previously granted digital bank licences to Nagad Digital Bank and Kori Digital Bank in October 2023 from 52 applications.
Nagad’s licence, however, was suspended in August 2024 over allegations of irregularities and non-compliance.
Following that controversy, Bangladesh Bank tightened supervision and revised its digital banking policy, signalling a more cautious approach in granting new licences.
Policy evolution
Bangladesh Bank first approved the Digital Bank Policy on June 14, 2023, setting the initial capital requirement at Tk 125 crore – significantly lower than the Tk 500 crore needed for traditional banks. The threshold was later raised to Tk 300 crore to ensure stronger financial footing and risk resilience among applicants.
Digital banks will be regulated under the Bank Companies Act, 1991, and their payment operations will follow the Bangladesh Payment and Settlement Systems Regulations, 2014.
The central bank is expected to evaluate the new applications over the coming months before finalizing the list of approved digital banks, marking a significant step toward Bangladesh’s transition to a cash-lite, technology-driven banking ecosystem.