Twelve entities have applied to Bangladesh Bank for licences to establish digital banks, as the central bank moves ahead with plans to introduce fully branchless banking in the country.
The applicants include major corporations such as bKash, Banglalink, Robi, Akij Resources, and several microfinance institutions.
The proposed banks are British Bangla Digital Bank PLC, Digital Banking of Bhutan-DK, Amar Digital Bank, 36 Digital Bank PLC, Boost, AMAR Bank, App Bank, Nova Digital Bank, Moitri Digital Bank PLC, Upokari Digital Bank, Munafa Islami Digital Bank, and bKash Digital Bank.
In August this year, the central bank revived the licensing process after a year-long suspension following the fall of the Awami League government in August 2024.
Earlier approvals for Nagad Digital Bank and Kori Digital Bank were withdrawn at that time.
The fresh round of applications was invited in August this year, with the submission deadline extended to November 2.
Applicants paid a non-refundable processing fee of Tk 5 lakh.
Under the revised digital banking guidelines, the minimum paid-up capital requirement has been raised from Tk 125 crore to Tk 300 crore.
Each licensed digital bank will be required to issue an initial public offering within five years of obtaining the licence, with the IPO amount not less than the sponsors鈥� initial capital.
Digital banks are expected to operate entirely online, without any physical branches, sub-branches, or ATMs.
Their services will be delivered through mobile and web-based applications, offering customers account management, fund transfers, and digital credit.
Although branchless in structure, these banks must comply with the same business and governance standards as traditional banks.
Bangladesh Bank said the initiative aims to expand financial access to underserved communities, particularly cottage, micro, and small enterprises.
The model is designed to cut operating costs, increase service efficiency, and bring unbanked populations into the formal financial system.
The move also aligns with global trends in technology-driven finance and the government鈥檚 goal of promoting innovation and inclusion under the Sustainable Development Goals and the Fourth Industrial Revolution.
The renewed drive comes at a time when Bangladesh鈥檚 banking sector faces serious challenges, with nearly 20 banks and 25 non-bank financial institutions in distress due to mismanagement and loan irregularities.
Some economists have questioned whether launching new banks is prudent under such conditions, suggesting that the regulator should prioritise reforming existing institutions.
However, central bank officials argue that dedicated digital banks could help rebuild public trust and reduce the cost of financial intermediation by offering faster, cheaper, and more transparent services nationwide.