Applications to set up digital bank invited again

Bangladesh Bank (BB) has once again invited applications from eligible institutions to secure a license of establishing a digital bank to accelerate the country's shift to cashless transactions and digital financial services.

In a press statement issued on Tuesday, the central bank has, in principle, decided to issue licences for digital banks against suitable proposals under the Bank Company Act, 1991 and 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 500,000 issued by any scheduled commercial bank in favour of Bangladesh Bank, according to the circular.

It added that failure to provide all required documents and information would result in the automatic cancellation of the application. Submissions must be sent both physically during office hours and digitally via apply.db@bb.org.bd.

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 1.25 billion to Tk 3.0 billion.

The central bank approved the guideline on digital banks in 2023 to accelerate the country's transition to cashless transactions and digital financial services.

The latest development comes following suspension of Nagad Digital Bank's license after a changeover in state power following last year's July-August mass uprising and a review of the digital bank licensing process.

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