Deadline Extended for Digital Bank Applications; Submission Now Possible Until 2nd November

Staff Reporter | PNN:
Bangladesh Bank has extended the deadline for submitting applications to establish digital banks until 2nd November. Previously, applications were accepted from 1st to 30th September of this year. The central bank announced this in a notice on Monday.

The notice stated that the call for applications to establish digital banks was initially made on 26th August. To allow applicants sufficient time to prepare complete proposals and gather necessary documents, the submission deadline has been extended until 6:00 PM on 2nd November.

The primary objectives of the digital bank approval initiative are to increase efficiency in the financial sector, expand the scope of services, and facilitate loan disbursement to small, cottage, and medium enterprises (CMSMEs). The central bank views this initiative as a tool to leverage the Fourth Industrial Revolution for sustainable economic growth and employment generation.

Applicants are required to submit a non-refundable fee of BDT 500,000 along with the proposal. Payment can be made to Bangladesh Bank via bank draft or pay order from any scheduled bank. In addition to direct submission, all documents must be sent via email. Detailed information is available on the Bangladesh Bank website.

According to the digital bank operational guidelines, the bank will have no branches except the head office. Banking services will be provided entirely through apps, mobile phones, or other digital platforms, with no over-the-counter services. Bangladesh Bank had previously set a minimum capital requirement of BDT 12.5 billion, which has now been increased to BDT 30 billion.

During the previous government, 52 institutions submitted applications, but the process did not progress due to funding-related complications. With the new extended deadline, applications are now being accepted again.