The new digital banking licence has been halted due to protests.

The initiative to grant licences to new digital banks in Bangladesh has been stalled following protests from senior officials of the Bangladesh Bank. The move, perceived as hurried, was slated for approval just a day before the formation of the new government, prompting concerns about transparency and governance.

On Monday morning, the Bangladesh Bank Officers’ Welfare Council formally protested, demanding the postponement of the board meeting. Despite a scheduled afternoon session of the bank’s Board of Directors, no approvals for digital banking licences were granted. Instead, the board was presented with a scorecard detailing the marks obtained by applicant institutions, effectively delaying any formal licence issuance.

The protest highlighted tensions within the central bank, which persisted throughout the day. Following a press briefing by the Welfare Council in the morning, the bank issued a directive forbidding employees from making personal statements or attending meetings or press events concerning bank policies without formal authorisation.

Bangladesh Bank spokesperson Arif Hossain Khan told Prothom Alo that while an update on the progress of digital bank applications was presented at the emergency board meeting, no decision had been taken regarding approvals.

Concerns Raised by Officers

At the press conference, council leaders criticised the timing and manner of the proposed licence approval. They pointed out that the emergency board meeting, called on 16 February with just one day’s notice, coincided with the post-election period following the 13th parliamentary elections on 12 February. Officers argued that this undermined the bank’s professional standards and raised suspicions that a particular group was being favoured for a licence.

The council noted that the current governor had previously chaired one of the banks associated with the applicants, raising potential conflicts of interest. Allegations also emerged that unqualified advisors were being included in decision-making processes, with some external individuals granted access to sensitive meetings and card issuance without board approval—an unprecedented breach of protocol.

The Welfare Council stressed that, under the Bank Companies Act, a bank cannot be a subsidiary of another bank, and any shareholder holding more than 10% of shares requires government approval. They warned that granting licences under the present political interim could violate both law and standard banking practice, creating a risk of monopolisation in the financial sector.

Digital Bank Applicants

According to Bangladesh Bank, 13 institutions have applied to establish digital banks. These include:

Officers emphasised the need for a thorough, transparent review before any new licences are granted, citing the high non-performing loan ratio of 36% as of September 2025 and the financial strain faced by many banks in honouring depositors’ claims.

The Welfare Council has called for the suspension of the 16 February emergency board meeting, an independent investigation into conflicts of interest, and a restoration of professionalism and autonomy in Bangladesh Bank’s governance, including leadership changes if necessary.