Five digital banks get initial nod from Bangladesh Bank

Bangladesh Bank (BB) today issued letters of intent (LoIs) to five proposed digital banks, allowing them to begin preparations for launching fully online banking operations.

The approval came at a meeting of the central bank's board of directors, chaired by Governor Md Mostaqur Rahman.

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The five entities are DK Digital Bank Ltd, backed by Bhutan's DK Bank; bKash Digital Bank, promoted by the mobile financial service provider bKash; Nova Digital Bank, a venture of Banglalink; Boost Digital Bank, promoted by Robi Axiata; and Kori Digital Bank founded by Habibullah N Karim, who is also the CEO of Technohaven.

Arief Hossain Khan, spokesperson for Bangladesh Bank, confirmed the development to The Daily Star.

A letter of intent is not a final licence. It sets the terms and conditions an applicant must meet, such as building its infrastructure, before it can start operations.

Under a BB policy issued on June 14, 2023, each digital bank must have at least Tk 300 crore in paid-up capital. Digital banks conduct all banking activities online through a website or mobile app, and each has only a headquarters, with no branches.

In October 2023, the central bank granted LoIs to Nagad Digital Bank and Kori Digital Bank after 52 companies had applied. Nagad's licensing was later put under review.

A second round drew applications from 12 entities, submitted by the November 2, 2025 deadline. Applicants included mobile financial service providers, telecom operators, commercial banks and large conglomerates, and several had foreign partners.

The central bank says its aim is to deliver affordable banking to small entrepreneurs and underserved communities and to support a cashless society.