The introduction of a groundbreaking concept, the ‘Digital Bank’ has been met with cautious interest, as no organizations have applied for the license since the web portal’s opening. The innovative ‘Digital Bank’ will function entirely through technology, without any physical branches, sub-branches, or ATM booths, offering bank services exclusively through mobile and digital devices.
o obtain the license for this new type of bank, interested parties need to invest Tk 125 crores, with a minimum requirement of Tk 50 lakhs to become a director. Despite opening a web portal to receive applications, not a single organization has applied so far, prompting the central bank to extend the application deadline.
Mezbaul Haque, spokesperson and executive director of Bangladesh Bank, revealed that while many people have registered for user IDs on the portal, no complete applications have been submitted. Numerous individuals have requested an extension of the deadline to ensure comprehensive and standardized proposals are prepared and necessary documents are collected. In response to this demand, the application period has been extended until August 17, 2023.The ‘Digital Bank’ initiative was approved by the Bangladesh Bank’s Board of Directors on June 14, and a policy was issued the following day.
On June 21, the Central Bank launched the web portal for online applications, allowing 42 days for potential applicants to submit their proposals. However, as of August 1, no applications have been received.
According to the central bank’s guidelines, the application for the digital bank license must be submitted through digital means, avoiding traditional document submission. The non-negotiable application fee is set at Tk 5 lakh, with a minimum capital requirement of Tk 125 crores.
The ‘Digital Bank’ will operate solely through mobile or app transactions, without any physical establishments. This unique banking model aligns with the bank company laws and policies of the country.
Prospective entrepreneurs seeking to establish a ‘Digital Bank’ must enter into a capital preservation agreement, ensuring adequate capital support in case of any shortfall. Additionally, individuals with pending loan default cases or debtors will not be eligible to apply for the digital bank entrepreneur role, as per the central bank’s policy.
Despite the current response, the potential of the ‘Digital Bank’ remains promising, providing an innovative approach to banking in Bangladesh, while also encouraging financial inclusion and enhanced digital accessibility for customers.
