Twelve institutions have applied to establish digital banks in Bangladesh. These banks, which are completely cashless, internet and mobile app-based, plan to provide banking services to customers through smartphones or other digital devices. Bangladesh Bank spokesperson and executive director Arif Hossain Khan said this on Monday.

The institutions are - British Bangla Digital Bank PLC, Digital Banking of Bhutan-DK, Amar Digital Bank-22 MFI, 36 Digital Bank PLC, Boost-Robi, Amar Bank (Proposed), App Bank-Farmers, Nova Digital Bank-Banglalink and Square, Maitri Digital Bank PLC, Aqari Digital Bank, Munafa Islami Digital Bank-Akij and bKash Digital Bank.

Bangladesh Bank said that this digital bank will be launched to increase efficiency in the financial sector by leveraging the opportunities of the fourth industrial revolution. It will not require separate branches, sub-branches or ATM booths; all services will be provided through mobile and digital devices based on the app.

According to the central bank's policy, the minimum paid-up capital for establishing a digital bank has been set at Tk 3 billion. The initiative aims to achieve sustainable economic growth by increasing efficiency, facilitating financing for small and medium entrepreneurs, increasing credit flow to marginalized communities, and creating employment in line with global changes in the technology-based financial sector.

On June 14, 2023, Bangladesh Bank formulated the Digital Bank Policy. At that time, the minimum paid-up capital was set at Tk 125 crore, which was later revised to Tk 3 billion. In the case of conventional banks, this amount is Tk 5 billion.

According to Bangladesh Bank, digital bank licenses will be issued under the Banking Companies Act of 1991, and payment services will be operated under the Bangladesh Payment and Settlement System Regulations of 2014.

Earlier, applications for establishing a digital bank were invited on August 26. The last date for receiving applications was September 30. However, taking into account the need for applicants to prepare complete and quality proposals and collect necessary documents, the deadline for receiving applications has been extended to November 2, 6 pm.