Bangladesh Bank has granted preliminary approval to four new digital banks and confirmed plans to issue them Letters of Intent (LoIs). The governing board of the central bank reached the decision during a meeting on Thursday, 24 September, presided over by Governor Mostaqur Rahman.
The four newly selected entities comprise bKash Digital Bank, Boost Digital Bank—which is backed by mobile network operator Robi Axiata—DK Digital Bank, supported by Bhutan’s DK Bank, and Nova Digital Bank, a joint venture between telecommunications provider Banglalink and industrial conglomerate Square Group. Alongside these four newcomers, the regulator resolved to issue a fresh LoI to Kori Digital Bank, which had previously secured initial sanction under a prior regulatory review. The decision raises the total number of institutions holding provisional approval to five.
Receiving a Letter of Intent does not constitute a full operating licence. Before commencing commercial operations, each applicant must demonstrate strict compliance with a series of technical, capital, and governance benchmarks set out by the monetary authority.
The selection follows an extensive vetting process by the central bank’s board. Twelve entities initially submitted proposals to establish branchless banking platforms in the country, but regulatory scrutiny narrowed the list down to four successful candidates in this latest round. The eight unsuccessful applicants were British Bangla Digital Bank PLC, Amar Digital Bank-22 MFI, 36 Digital Bank PLC, Amar Bank, App Bank-Farmers, Maitree Digital Bank PLC, Upokari Digital Bank, and Munafa Islami Digital Bank-Akij.
The initiative to introduce digital-only banking in Bangladesh has experienced significant shifts in recent years. In October 2023, under the previous Awami League administration, the central bank had originally approved Nagad Digital Bank PLC and Kori Digital Bank PLC. Following the political transition and the fall of the Awami League government, financial regulators suspended those earlier licences to re-evaluate the selection framework. After conducting a fresh review of all submitted proposals, the regulator elected to move forward with the current group of five institutions.
By expanding digital banking infrastructure, the central bank aims to deepen financial inclusion across Bangladesh, leveraging established mobile financial services and corporate backing to reach unbanked populations.
