Dozen aspirants apply for digital bank

Twelve aspirants have submitted applications to the central bank for licence to operate new-era digital banks in Bangladesh, officials said, apace with current global switch to cashless banking.
The applicants for the proposed digital banks include mobile financial service provider, mobile-phone operators, microfinance institutions, and large business conglomerates.
Nomenclatures of the proposed digital banks include 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.
"We have received twelve applications for digital bank licences," a senior official of Bangladesh Bank (BB) told the FE.
He said the department concerned of the central bank will analyse the applications focusing key issues like technology, cybersecurity, innovation and business plan of the applicants in the second phase of the process. Based on the evaluation, the central banker said, the departments concerned will prepare a detailed report to be submitted to the BB governor for his approval. After the go-ahead from the governor, the matter will be placed before the BB board for the final decision.
The BB had earlier extended the timeline for submissions to November 02, following requests from interested parties.
Meanwhile, the central bank approved the guideline on digital banks in 2023 to accelerate the country's transition to cashless transactions and digital financial services.
Besides, the central bank had raised the paid-up-capital requirement for digital banks from Tk 1.25 billion to Tk 3.0 billion.
Under the guidelines, preliminary approval was granted to Nagad Digital Bank and Kori Digital Bank. But both licence-holders did not comply with the regulations to start the proceedings in scheduled timeline.
Soon after the changeover in state power following last year's mass uprising, strong criticism arose over legality of Nagad's then authority that prompted the banking regulator to suspend Nagad's digital-banking licence before inviting applications over again in August last.

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