Bangladesh Bank has once again invited applications from investors to establish the country鈥檚 first digital banks, with an aim of ensuring faster and more accessible financial services through a fully branchless model.
In a notice issued on Tuesday, the central bank said it will accept applications between September 1 and September 30, 2025, under section 31 of the Bank Company Act, 1991.
Applicants must submit proposals with a non-refundable processing fee of Tk 5 lakh. Failure to provide the required documents will lead to automatic cancellation, it said.
The central bank framed its digital bank guidelines on June 14, 2023, and recently revised them to strengthen capital and operational requirements.
The minimum paid-up capital has been raised to Tk 300 crore from Tk 125 crore earlier.
Digital banks must also launch an initial public offering (IPO) within five years of licensing, with the IPO size not less than the sponsors鈥� initial capital.
According to the guidelines, a digital bank will operate entirely online with only a head office, requiring no physical branches, sub-branches, ATMs, or cash-deposit machines.
All services will be app-based and delivered through mobile phones and other digital devices.
While structurally different from traditional banks, digital banks must comply with the same business, governance, and operational standards.
Bangladesh Bank said the move reflects global shifts toward technology-driven finance and aims to widen access to credit, particularly for cottage, micro, and small enterprises (CMSEs) and underserved groups, according to the notice.
Promoting innovation-led growth and financial inclusion is also seen as crucial to achieving the Sustainable Development Goals (SDGs) and adapting to the Fourth Industrial Revolution, it said.
This is not the first attempt to introduce digital banks.
The central bank previously invited applications in 2023 and approved Nagad as a digital bank, though the licence was later cancelled following the fall of the Awami League government in August 2024.
Currently, 61 scheduled commercial banks and 35 non-bank financial institutions (NBFIs) operate in Bangladesh, with many already offering digital banking services.
However, about 20 banks and 25 NBFIs have faced near collapse in recent years due to loan irregularities, mismanagement, and corruption.
Critics have questioned the necessity of licensing new banks in such a troubled sector, arguing that strengthening existing institutions should take priority.
Still, the central bank insists that dedicated digital banks could drive efficiency, expand outreach, and reduce costs in delivering financial products across the country.
