Published : 24 Sep 2026, 07:16 PM
Updated : 24 Sep 2026, 10:48 PM
Bangladesh is taking its first step towards digital-only banking, with five institutions securing letters of intent to launch their ventures.
Bangladesh Bank issued the initial approvals at a meeting of its board of directors on Thursday.
The approved ventures are bKash Digital Bank, backed by bKash; Boost Digital Bank, backed by Robi Axiata; Kori; DK Limited; and Nova Digital Bank, backed by VEON and Square.
Bangladesh Bank spokesperson Arief Hossain Khan confirmed the matter to bdnews24.com.
“Five institutions have been given initial licences for digital banks. Final licences will be issued once all conditions are fulfilled,” he said.
Among the five, Kori had previously received approval during the tenure of the ousted Awami League government.
Habibullah N Karim is a senior vice president of the Metropolitan Chamber of Commerce and Industry (MCCI) and the husband of former finance secretary Fatima Yasmin.
Digital Banking Initiative Progresses
Discussions over digital banks in Bangladesh have been ongoing for more than three years, with applications accepted in two rounds and the policy guidelines amended during the process.
Fourteen entities had applied to Bangladesh Bank to establish digital banks, most with foreign partnerships. The central bank decided to issue LOIs to four of them, while Kori, which had previously received approval, was allowed to apply again for a final licence.
An attempt to quickly grant a digital banking licence to an entity on Feb 16, the day before the interim government’s tenure ended and the BNP government was set to take office, was stalled following protests by central bank officials led by the Bangladesh Bank Officers’ Welfare Council.
The central bank said at the time that no board meeting had been convened specifically to approve a digital banking licence. Rather, a board meeting had been held to present the submitted applications for consideration.
The 14 applicants were:
● British Bangla Digital Bank PLC, formed by a consortium of 12 entities
● Digital Banking of Bhutan, by Bhutan’s DK Bank
● Amar Digital Bank-22, a joint venture of 22 microfinance institutions
● 36 Digital Bank PLC, applied for collectively by a group of individuals
● Boost, by mobile phone operator Robi Axiata
● Amar Bank, a joint initiative by several NGOs and microfinance providers
● App Bank, initiated by expatriate entrepreneurs
● Nova Digital Bank, a joint venture between mobile operator Banglalink and Square Group
● Kori, a joint venture led by business leader Habibullah involving entrepreneurs from the banking, telecom and technology sectors
● Maitree Digital Bank PLC, by microfinance organisation ASA
● Munafa Islami Digital Bank, by Akij Resources
● bKash Digital Bank, by bKash, which is owned by BRAC Bank
● Japan Bangla Digital Bank, by DBL Group
● Upokari Digital Bank, by IT Solutions Limited
During the previous Awami League government, Nagad Digital Bank had received final approval to launch. The initiative involved entrepreneurs of mobile financial service provider Nagad as well as others, including Summit International Chairman Farid Khan.
What Is A Digital Bank?
A digital bank operates through internet and app-based services accessed through digital devices, without physical branches or customer service facilities.
Under the policy, a digital bank will maintain only a head office for administrative purposes.
It will not operate over-the-counter counters or physical booths, and will not have its own branches, sub-branches, ATMs, cash deposit machines or cash recycling machines.
Digital banks may offer virtual cards, QR codes and other technology-based products to facilitate transactions, but they cannot issue physical plastic cards.
Customers will be able to use ATMs and agent banking outlets operated by other banks.
The banks will also not be allowed to open letters of credit or provide loans to large and medium-scale industries. They will only be permitted to provide small-scale loans.
Industry insiders believe digital banks could expand access to financial services by bringing deposits, loans and remittance services to users through digital platforms.
Operating without physical branches is also expected to reduce service costs and support greater financial inclusion.
