Bangladesh Bank set to approve digital bank policy on June 14

Bangladesh Bank (BB) completed the preparations of the ‘Digital Bank’ policy for approval at its board meeting on June 14 to provide banking facilities to people of all levels.

The work of formulating the outline and policies of the digital bank operation in the country has been completed. The digital bank will be approved at the next board meeting of the central bank set on June 14.

This bank will operate without branches across the country. A minimum capital of Tk 1.5 billion is required to get a license for this technology-based modern bank, the BB sources said.

Finance Minister AHM Mustafa Kamal has mentioned setting up a digital bank to expand and accelerate the country's economic inclusion efforts in the proposed budget for the fiscal year 2023–24.

Bangladesh Bank is working towards this goal. The work of formulating the policy of the digital bank has been completed. Digital Bank will be operated according to these policies and the Bank Company Act.

Only if the digital bank is approved will the bank's journey toward Smart Bangladesh take another step forward.

At present, the minimum capital required to obtain a conventional bank license is Tk 5.0 billion. Digital Bank's deposit collection, loan application, and loan approval will be online based and it will be easy to identify fake borrowers and genuine borrowers.

Wishing to be anonymous, an official of Bangladesh Bank, told UNB that the outline and policies of the digital bank have been prepared. It will be sent to the board meeting on June 14.

After approval at the board meeting, further activities will start.