Four entities get initial approval to establish digital banks

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Bangladesh Bank has given initial approval to four entities to establish digital banks, with letters of intent (LoIs) to be issued before they complete the remaining requirements to begin operations.

The decision was made at a meeting of the Bangladesh Bank board chaired by Governor Mostaqur Rahman.

The approved entities are Digital Banking of Bhutan, backed by Bhutan’s DK Bank; bKash Digital Bank, sponsored by bKash shareholders; Nova Digital Bank, backed by VEON, the parent company of Banglalink, and Square Group; and Boost Digital Bank, sponsored by Axiata Limited, the parent company of Robi.

The board also approved issuing an LoI to Kori Digital Bank, which had already received initial approval.

Bangladesh Bank had earlier sought applications for digital bank licences during the interim government’s tenure. A total of 13 entities applied, including industrial groups, microfinance organisations, mobile operators and mobile financial service providers.

Applications were accepted from September 1 to November 2, 2025, but the licences were not approved during the interim government period amid several issues, including protests by Bangladesh Bank officials. Ahsan H Mansur was the governor at the time.

Following the formation of the BNP government, Mansur was replaced by Mostaqur Rahman. Bangladesh Bank did not invite new applications after that. Instead, the board selected four entities from the previous applicants to move forward with establishing digital banks.