The Bangladesh Bank (BB) has extended the deadline for submitting applications for digital bank licences to August 17, from the original deadline of Tuesday, August 1.
The extension was announced on Sunday in a press release signed by Saeda Khanam, director (publication) of the central bank.
The BB said the extension was granted to give interested parties more time to prepare their proposals.
"The BB has extended the deadline so that interested parties get more time to prepare proposals with quality," Md Sarwar Hossain, assistant spokesperson of the BB, told the FE.
He said the BB is not aware of how many applications have been submitted so far.
We will open the electronic box after August 17 and then we will know how many applications have been received, said the assistant spokesperson.
The BB invited applications for the digital bank from entrepreneurs on June 21 this year.
The BB has decided in principle to issue the licence for full-fledged digital banking, recognising the role of digital platforms and the usage of artificial intelligence in driving greater efficiency in the delivery of financial products and services, as well as in widening the outreach of the financial system.
According to the BB, the initial minimum paid-up capital required for establishing a digital bank is Tk 1.25 billion, to be provided by the sponsors.
Each sponsor must hold a minimum shareholding stake of Tk 5.0 million. Sponsors' contributions to the share capital of the proposed digital bank must come from their net worth declared to the tax authorities; any contributions from borrowings or sources other than net worth, including family members, will not be acceptable.
Additionally, a non-refundable application processing fee of Tk 0.5 million should be paid.
The authorities anticipate that the digital bank licence will help increase financial inclusion in Bangladesh.
jasimharoon@yahoo.com
