Published : 06 Aug 2026, 04:02 PM
Updated : 08 Sep 2026, 09:30 AM
Discussions on digital banks in Bangladesh have dragged on for more than three years, yet none has seen the light of day.
Applications have been invited twice, policies have been revised, and disputes have flared over final approvals and licences.
Still, no digital bank has launched, and even when customers might get to use one remains unclear.
Asked when digital banks might arrive in Bangladesh, central bank spokesperson Arief Hossain Khan told bdnews24.com on Saturday that evaluation of applications submitted in the second round was in its final stage.
"Once the evaluation is complete, the committee will submit its report to the governor. The governor will place it before the Bangladesh Bank board. The board will then decide.”
A total of 12 firms applied to Bangladesh Bank in the latest round to set up digital banks, most of them with foreign partnerships.
Some applicants have prior experience running digital banks in other countries.
The list includes bKash, along with ventures backed by Robi and Banglalink.
Bangladesh Bank opened the second round of applications for licences from Sept 1, 2025, with a deadline of Sept 30, later extended to Nov 2.
An earlier attempt to rush through a licence for one firm, on Feb 16, the last day of the interim government and the day before the BNP government took charge, was blocked after protests from central bank officials.
The Bangladesh Bank Officers' Welfare Council had raised the objection.
The central bank had then claimed no board meeting had been called to approve any firm's digital bank licence, and that the board meeting held was only to present the applications received.
At a press conference, Welfare Council leaders said the emergency board meeting was called on Feb 16 with just a day's notice, at a time when newly elected representatives were being sworn in and a government was being formed following the Feb 12 election.
They said the move risked undermining Bangladesh Bank's transparency and professionalism, adding that its real purpose was to hand a licence to a particular group, raising widespread questions and concern.
The leaders said the firm slated to receive the licence had, in the past, had the governor serve as chairman of one of its banks, a conflict they said violated the central bank's basic principle of neutrality.
What Happened Under Awami League
The first move to set up digital banks in Bangladesh came in 2023.
Under the then Awami League government, Bangladesh Bank announced a policy on Jun 14 that year aimed at establishing digital banks.
Based on that policy, the central bank issued its first call for proposals or applications to form digital banks.
The policy set a minimum paid-up capital of Tk 1.25 billion for setting up a digital bank.
Following the policy, a notice inviting applications from interested parties was issued on Jun 20 that year, drawing 52 applications.
After a three-stage evaluation, nine proposals were forwarded to the board meeting.
Of these, excluding Nagad and Kori, letters of intent (LOI) were later decided for Smart Digital Bank, North East Digital Bank and Japan-Bangla Digital Bank.
bKash, Digi 10 and 36 banks were instead approved to open "digital banking wings" rather than receive separate digital bank licences.
An application from Pragati Life Insurance was rejected.
Before the Awami League government's fall, Bangladesh Bank issued a final licence to Nagad Bank in June 2024.
In August 2023, LOIs had been issued in the names of Nagad and Kori Digital Bank.
However, after the fall of the Sheikh Hasina government, allegations surfaced that these banks had been set up using laundered money funnelled through companies opened abroad.
Bangladesh Bank subsequently suspended Nagad Bank PLC's licence, while Kori has still not been granted one.
What Changed Under Interim Govt?
Under the interim government, Bangladesh Bank issued a fresh call for digital bank applications on Aug 26 last year.
The notice said the central bank had taken the initiative to approve digital banks against the backdrop of global shifts toward technology-driven finance, aiming to boost efficiency in the financial sector, widen the range of services, and ease financing access for cottage, micro and small enterprises (CMSME).
It said digital banks were seen as a key tool for easing credit flow to marginalised communities.
In a notification on Aug 21, Bangladesh Bank had set the minimum paid-up capital for forming a digital bank company at Tk 3 billion, up from Tk 1.25 billion under the Jun 14, 2023 policy.
All other conditions in the policy remained unchanged.
Awaiting Evaluation
The 12 applicants are British Bangla Digital Bank, Digital Banking of Bhutan, Amar Digital Bank-22, 36 Digital Bank, Boost by Robi Axiata, Amar Bank, App Bank, Nova Digital Bank, Maitree Digital Bank, Munafa Islami Digital Bank, bKash Digital Bank, Japan-Bangla Digital Bank and Upokari Digital Bank.
Asked whether any digital bank could begin operations this year, Bangladesh Bank spokesman Arief said no timeframe could be confirmed.
He said every applicant must pass multiple stages of scrutiny before a licence is granted.
"It is possible that all applicants meet the requirements. It is also possible that only a few do. Or none of them may satisfy every condition.
"So nothing can be confirmed at this stage."
What Is a Digital Bank?
A digital bank will operate entirely through internet-based and mobile services.
Under the policy, it will have only a head office and no branches, sub-branches, over-the-counter services, ATMs, cash deposit machines (CDMs) or cash recycling machines (CRMs).
Customers will access services through mobile apps and other digital platforms.
Digital banks may introduce virtual cards, QR-code payments and other technology-based products, but they will not issue plastic cards.
Customers will, however, be able to use the ATM networks, agent banking facilities and other services of conventional banks.
Digital banks will not be allowed to open LCs or finance large and medium-sized industries, but they will be permitted to provide small loans.
Industry experts believe digital banks could transform Bangladesh's financial sector even more significantly than mobile financial services did over the past decade by allowing customers to save money, borrow, receive remittances and access other banking services entirely through digital channels at lower cost.
