Dhaka, Bangladesh (BBN) - Twelve entities have submitted applications to the central bank seeking licences to operate digital banks in Bangladesh, officials said.
The applicants for the proposed digital banks include mobile financial service providers, mobile phone operators, microfinance institutions, and large business conglomerates.
The proposed digital banks 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.
“We’ve received twelve applications for digital bank licences,” a senior official of Bangladesh Bank (BB) said while replying to a query.
He also said the relevant department of the central bank will now scrutinize the applications, focusing on key issues such as technology, cybersecurity, and the business plans of the applicants.
Based on the findings, the concerned departments will prepare a detailed report to be submitted to the BB governor for approval. After the governor’s approval, the matter will be placed before the BB board for the final decision, according to the central banker.
The central bank had earlier extended the submission deadline to November 2 following requests from interested parties.
Meanwhile, the BB approved the Guidelines on Digital Bank in 2023 to accelerate the country’s transition toward cashless transactions and digital financial services.
Under the guidelines, preliminary approvals were granted to Nagad Digital Bank and Kori Digital Bank. However, both license holders failed to comply with regulatory requirements within the stipulated timeline.
Following last year’s change in state power after the mass uprising, controversy arose over the legality of Nagad’s former authority, prompting the banking regulator to suspend Nagad’s digital bank licence before inviting new applications in August this calendar year.
BBN/SSR/AD