Photo : Collected

DHAKA, Nov 03 (BSS) - A total of 12 domestic and foreign entities havesubmitted applications to the Bangladesh Bank (BB) for digital bank
licenses, following the closure of the application deadline on Sunday.

Arif Hossain Khan, executive director and spokesperson of the centralbank, confirmed the development today.

The 12 entities are British Bangla Digital Bank PLC, Digital Bankingof Bhutan-DK, Amar Digital Bank-22MFI, 36 Digital Bank PLC,Boost-ROBI, Amar Bank (proposed), App Bank-Farmers, Nova DigitalBank-Banglalink and Square, Moitri Digital Bank PLC, Upokari Digital Bank, Munafa Islami Digital Bank-AKIJ, and bKash Digital Bank.

The central bank had previously extended the deadline to November 2,issuing a notice to that effect on September 15. 

Applicants were required to submit all relevant documents to the Banking Regulation and Policy Department of the Bangladesh Bank.

On 26 August, the Bangladesh Bank invited fresh applications for digital bank licences, revising its digital bank guidelines to prevent
shell companies from sponsoring proposed digital banks.

The revised guidelines, issued on 25 August, also tighten the fit-and-proper test for sponsors, raising the paid-up capital requirement from Tk125 crore to Tk300 crore.

Besides, if an individual sponsor or the nominated representative of an institutional sponsor holds citizenship in more than one country,
full details of all citizenships and related information must be provided.

Any previously renounced citizenships must also be disclosed, according to the revised guidelines.

Enterprises, companies, or individuals awaiting verdicts in any ongoing lawsuits related to loan default status will be ineligible to
apply as sponsors. Banks or finance companies operating in Bangladesh are also barred from sponsoring.

Previously, in October 2023, the Bangladesh Bank granted digital banking licences to two applicants – Nagad and Kori Digital Bank – out
of 52 submissions.

Nagad was backed by the same investors as Nagad Mobile Financial Services, while Kori was sponsored by ACI.

However, in August 2024, the Bangladesh Bank suspended Nagad Digital Bank's licence over allegations of corruption and dubious sponsors.