BB Approves LOIs for 4 Digital Banks

Dhaka, Thursday (24 September): Leveraging cloud-based core banking architecture, automated e-KYC protocols, open API data frameworks, and robust cybersecurity infrastructure, Bangladesh Bank has granted preliminary approval to four entities—including bKash, Robi, and Banglalink—to set up full-fledged digital banks. The regulatory authority will soon issue Letters of Intent (LOI) to these organizations. The entities can initiate full commercial operations only after successfully executing subsequent legal, regulatory, and technical integration phases.

The decision was finalized today, Thursday (24 September), during a meeting of the Board of Directors of Bangladesh Bank, chaired by Governor Mostakur Rahman. Central bank spokesperson Arif Hossain Khan confirmed the development.

The four entities receiving preliminary approval are Digital Banking of Bhutan, bKash Digital Bank, Nova Digital Bank, and Boost Digital Bank. Among these, Digital Banking of Bhutan is backed by Bhutan's DK Bank. The primary shareholders of MFS provider bKash are behind bKash Digital Bank. Nova Digital Bank is a joint venture between Banglalink's parent company VEON and leading industrial conglomerate Square Group. Boost Digital Bank is sponsored by Axiata Limited, the parent company of mobile operator Robi Axiata.

Additionally, the board decided to re-issue an LOI to ACI’s Kori Digital Bank—which had received preliminary approval earlier—subject to fulfilling updated conditions.

Under the revised regulations, each digital bank must commence operations with a paid-up capital of BDT 300 crore, fully deposited by sponsor shareholders. Under the previous Awami League administration, the paid-up capital requirement stood at BDT 125 crore.

Furthermore, final licenses will not be granted immediately. Digital banks must operate on a trial basis for six months. If operational performance and compliance are deemed satisfactory during this pilot phase, final licenses will be awarded. Failure to meet prescribed conditions during the trial period may result in the forfeiture of the license.

Previously, during the interim government, Bangladesh Bank invited applications for digital banking licenses, receiving 13 proposals from top industrial conglomerates, microfinance institutions, mobile network operators, and MFS providers between September 1 and November 2, 2025. Ahsan H. Mansur was serving as Governor at the time, though final decisions were stalled due to administrative complexities. Following the installation of the new government, Mostakur Rahman was appointed Governor replacing Ahsan H. Mansur. Without inviting fresh applications, the Board of Directors evaluated the previously submitted proposals and granted preliminary approval to these four entities.

//DBTech/DPO/SMP/MIST//