Bangladesh Bank has issued letters of intent (LoIs) to five proposed digital banks, allowing them to begin preparations for launching fully online banking operations.
The approvals were given at a meeting of the central bank’s board of directors chaired by Governor Md Mostaqur Rahman on Thursday.
The five proposed digital banks are DK Digital Bank Ltd, backed by Bhutan’s DK Bank; bKash Digital Bank, promoted by mobile financial service provider bKash; Nova Digital Bank, a venture of Banglalink; Boost Digital Bank, promoted by Robi Axiata; and Kori, founded by Technohaven CEO Habibullah N Karim.
Bangladesh Bank spokesperson Arief Hossain Khan confirmed the development.
An LoI is not a final licence. It sets out the terms and conditions that an applicant must fulfil, including developing the necessary infrastructure, before commencing operations.
Under Bangladesh Bank’s digital banking policy issued on June 14, 2023, each digital bank must have at least Tk 300 crore in paid-up capital.
Digital banks will conduct banking activities entirely online through websites or mobile apps and operate with headquarters but without conventional branches.
In October 2023, the central bank issued LoIs to Nagad Digital Bank and Kori Digital Bank after receiving applications from 52 entities. Nagad’s licensing was subsequently put under review.
For the second round, 12 entities submitted applications by the November 2, 2025 deadline. The applicants included mobile financial service providers, telecom operators, commercial banks and large business groups, with several having foreign partners.
The central bank has said the digital banking initiative aims to provide affordable banking services to small entrepreneurs and underserved communities and help promote a cashless economy.