52 companies apply for digital bank licence

A total of 52 domestic and foreign institutions have submitted applications to get licences to open digital banks, a spokesperson of Bangladesh Bank said on Sunday.

Among the applicants are state-owned and private commercial banks, mobile financial services (MFS), ridesharing and food delivery companies, and domestic and multinational companies. Some of the institutions have applied individually and some jointly to get the license, said Mazbaul Haque, the executive director of the central bank and its spokesman.

“These applications will be scrutinised. The Central Bank Board will issue LOI (Letter of Intent) for the licence to those who have applied and are eligible as per the policy,” Haque said.

‘Digital Bank’ will be completely technology dependent without having physical branches, sub-branches, and ATM booths. There will be no physical transaction. Bank services will be provided to customers using mobile and digital devices as per policy, he said.

Meanwhile, the BB opened a web portal for the application of Digital Bank, and all processes of this bank would be made through digital method instead of submitting paper documents in the traditional method, the central bank sources said.

That means all the necessary documents must be submitted digitally. The application fee will be Tk 5 lakh, which is non-refundable.

An initial capital of Tk 125 crore will be required for the licence of banks, and at least Tk 50 lakh will be required to become a director. Those interested in starting this new bank should apply through the new web portal.

Earlier on June 14, the Board of Directors of Bangladesh Bank approved the launch of ‘Digital Bank’.

On June 15 it issued a policy in this regard. In continuation of this, the Central Bank launched a web portal on June 21 to submit online applications.