Bangladesh Bank’s board of directors has agreed to grant initial approval to five digital banks, paving the way for the central bank to issue Letters of Intent (LoIs) to the proposed lenders.
The banks will be able start online operations after completing the necessary formalities following the issuance of the LoIs.
The decision was made at a meeting of the central bank’s board of directors held on Thursday, chaired by Governor Md Mostaqur Rahman.
The digital banks that received initial approval are Digital Banking of Bhutan, sponsored by Bhutan’s DK Bank; bKash Digital Bank, sponsored by the shareholders of bKash; Nova Digital Bank, backed by VION, the parent company of Banglalink, and Square Group; and Boost Digital Bank, sponsored by Axiata Limited, the parent company of Robi.
The board also decided to issue an LoI to Kori Digital Bank, which had already received initial approval earlier.
Bangladesh Bank invited applications for setting up digital banks during the tenure of the interim government. A total of 13 entities submitted applications.
The applicants included leading business groups, microfinance institutions, mobile network operators and mobile financial service (MFS) providers.
The central bank accepted applications for digital bank licences from September 1 to November 2, 2025.
However, the approvals could not be granted during the interim government’s tenure amid various issues, including protests by Bangladesh Bank officials.
The latest board decision will allow the approved entities to proceed with the next stage of the licensing process before launching their digital banking operations.
