Twelve Firms Apply for Digital Bank Licenses in Bangladesh

A total of twelve local and foreign entities have applied to the Bangladesh Bank for digital banking licences, as the submission deadline closed on 2 November, according to an official statement from the central bank.

The applicants 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.

Confirming the development on 3 November, Arif Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank, stated that all applications had been submitted in line with the revised licensing framework. Earlier, the central bank had extended the deadline to 2 November through a notice issued on 15 September, requiring applicants to file complete documentation with the Banking Regulation and Policy Department.

The move follows Bangladesh Bank’s decision on 26 August to invite fresh applications after amending its digital banking guidelines to prevent shell companies from sponsoring proposed banks. The revised rules, issued on 25 August, raised the minimum paid-up capital requirement from Tk125 crore to Tk300 crore and introduced stricter fit-and-proper criteria for sponsors.

Under the new guidelines, individuals or representatives of institutional sponsors with dual or multiple citizenships must provide full details of their nationalities, while any renounced citizenships must also be disclosed. Additionally, any person, company, or enterprise involved in ongoing legal disputes over loan defaults will be ineligible to apply. Banks or financial institutions currently operating in Bangladesh are likewise prohibited from sponsoring digital banks.

Previously, in October 2023, Bangladesh Bank approved licences for two digital banks—Nagad Digital Bank and Kori Digital Bank—out of 52 applicants. Nagad was backed by investors from Nagad Mobile Financial Services, while Kori was sponsored by ACI Limited.

However, in August 2024, the central bank revoked Nagad Digital Bank’s licence following allegations of corruption and questionable sponsorship, underscoring its renewed emphasis on transparency and regulatory compliance in the emerging digital banking sector.