Digital bank licence window reopens
Bangladesh Bank has once again invited applications from interested investors willing to establish a digital bank.
The central bank has, in principle, decided to issue licences for digital banks against suitable proposals under the Bank Company Act, 1991, according to a statement.
For all latest news, follow The Daily Star's Google News channel. Applications can be submitted between September 1 and September 30 this year, it added.
The statement said BB now seeks fresh sealed applications from eligible and qualified sponsors to set up digital banks.
"As a processing fee, each application must be submitted along with a non-refundable pay order of Tk 5 lakh issued by any scheduled commercial bank in favour of Bangladesh Bank," as per the circular.
It added that failure to provide all required documents and information would result in the automatic cancellation of the application.
The central bank said it recognises the changing landscape of the global financial ecosystem, which is being driven by continuous technological innovation.
Earlier, BB raised the paid-up capital requirement for digital banks from Tk 125 crore to Tk 300 crore.
The central bank approved the guideline on digital banks in 2023.
According to the guideline, a branchless, end-to-end virtual banking system will help extend financial services to the last mile of the country.
Sponsors of the proposed digital banks must provide the minimum paid-up capital, and the bank must launch an initial public offering (IPO) within five years from the date of licence issuance by BB. The IPO amount cannot be less than the sponsors' initial paid-up capital.
Under the guidelines, preliminary approval was granted to Nagad Digital Bank and Kori Digital Bank.
However, the initiative was suspended following the fall of the Awami League government in August, 2024.
Aref Hossain Khan, executive director and spokesperson of the central bank, said that the interim licenses of Nagad Digital Bank and Kori Digital Bank have not been cancelled.
"We had issued interim licenses to them. The feature of such a license is that once it is provided, the entities prepare their platforms and then apply for a full license. After receiving the application, we conduct an on-site inspection, and if we find them ready, we issue them the license for commercial launching and operation. But they have not yet sent us any application requesting a full operational or commercial license," he said.
"However, if they prepare their platforms now, they will have to raise their capital to Tk 300 crore instead of previous Tk 125 crore," he added.
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