A total of 12 companies have applied to establish digital banks in Bangladesh, aiming to offer fully cashless banking services through internet and mobile apps, according to Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan.
The applicants include British Bangla Digital Bank PLC, Digital Banking of Bhutan-DK, Amar Digital Bank-22 MFI, 36 Digital Bank PLC, Boost-Robi, Amar Bank (proposed), App Bank-Farmers, Nova Digital Bank-Banglalink & Square, Maitri Digital Bank PLC, Upokari Digital Bank, Munafa Islami Digital Bank-Akij, and bKash Digital Bank.
These banks will provide services entirely via smartphones and other digital devices, eliminating the need for physical branches, sub-branches, or ATMs. Bangladesh Bank stated that the initiative aims to leverage the Fourth Industrial Revolution to enhance efficiency in the financial sector.
According to central bank regulations, a minimum paid-up capital of BDT 3 billion (300 crore) is required to establish a digital bank. The initiative seeks to strengthen digital financial infrastructure, facilitate financing for small and medium enterprises, expand credit access for underserved populations, and boost employment to support sustainable economic growth.
Bangladesh Bank first issued guidelines for digital banks on June 14, 2023, with an initial minimum capital requirement of BDT 1.25 billion (125 crore), later revised to BDT 3 billion. By comparison, traditional banks require a minimum paid-up capital of BDT 5 billion.
Licenses will be granted under the Bank Companies Act, 1991, and payment services will be regulated under the Bangladesh Payment and Settlement Systems Regulations, 2014. The application process was initially open from August 26 to September 30 but was extended to November 2 to allow applicants more time to submit complete and proper proposals.
