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BB clears 5 digital banks for trial
Daily Sun Report, Dhaka
Published: 25 Sep 2026, 12:00 AM
Bangladesh Bank has given initial approval to five proposed digital banks, issuing Letters of Intent (LoIs) that allow them to begin preparations for fully online banking operations.
The central bank’s board has also issued a fresh LoI to Kori Digital Bank, which had received preliminary approval earlier but must now meet revised conditions, including a higher capital requirement.
The decision was taken at a meeting of the Bangladesh Bank board of directors chaired by Governor Md Mostaqur Rahman.
The five newly selected entities 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 Digital Bank, founded by Technohaven CEO Habibullah N Karim.
Bangladesh Bank spokesperson Arief Hossain Khan confirmed the development.
An LoI is not a final banking licence. It sets out the conditions an applicant must meet before being granted a licence, including requirements for infrastructure and operational readiness.
Under Bangladesh Bank’s revised digital banking policy, each digital bank must have at least Tk300 crore in fully paid-up capital before beginning operations. The requirement was Tk125 crore under the previous government.
The entire Tk300 crore must be paid up by the owner shareholders.
The selected entities will not receive final licences immediately. They will first have to operate on a six-month trial basis. If Bangladesh Bank considers their operations satisfactory, it may subsequently grant final licences. Failure to complete the trial period successfully could result in a final licence being withheld.
Digital banks will conduct banking activities entirely through digital platforms, including websites and mobile applications. They will have a headquarters but no conventional branches.
Kori gets fresh LoI
The decision also affects the two digital banks that were selected in the first round of applications.
In August 2023, the Bangladesh Bank board issued LoIs to Nagad Digital Bank and Kori Digital Bank after receiving 52 applications.
Nagad Digital Bank was subsequently granted a final licence in June 2024, before the fall of the previous Awami League government.
Following the change of government, allegations emerged that money had been siphoned abroad through the establishment of companies linked to the digital bank.
Bangladesh Bank later suspended Nagad Digital Bank’s licence.
Kori, meanwhile, had not received a final licence.
“Kori had previously received an LoI under the earlier conditions. However, Bangladesh Bank has introduced some new conditions, including a higher paid-up capital requirement. As Kori will now have to comply with the revised conditions, the central bank has issued a fresh LoI to the company,” Arief Hossain Khan told the Daily Sun.
He said no discussion on Nagad Digital Bank took place at Wednesday’s board meeting.
Second round
The latest selections came from the second round of applications for digital banking licences.
Bangladesh Bank invited applications in June 2023 and received 52 applications, from which Nagad and Kori were initially selected.
The central bank later invited applications again during the interim government. Applications were accepted from September 1 to November 2, 2025, with 13 entities applying, according to Bangladesh Bank officials.
The applicants included major business groups, microfinance organisations, mobile network operators and mobile financial service providers. Some also had foreign partners.
The central bank did not approve the applications during the interim government period amid several developments, including protests by Bangladesh Bank officials. Ahsan H Mansur was governor at the time.
After the BNP formed the government, Mansur was replaced by Md Mostaqur Rahman. No fresh application process was subsequently launched. Instead, the Bangladesh Bank board selected entities from among the applications already submitted.
The central bank says its digital banking initiative is intended to expand affordable banking services to small entrepreneurs and underserved communities while promoting a cashless economy.