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The Bangladesh Bank board has given preliminary approval to establish four new digital banks in the country, while also deciding to issue a Letter of Intent (LoI) to Kori Digital Bank, which had received preliminary approval earlier.
The banks will be able to begin operations after receiving the LoI and completing the required procedures and meeting the stipulated conditions.
The decisions were taken at a meeting of the Bangladesh Bank board on Wednesday, chaired by Governor Mostaqur Rahman.
The four banks receiving preliminary approval are Digital Banking of Bhutan, bKash Digital Bank, Nova Digital Bank and Boost Digital Bank.
Digital Banking of Bhutan is sponsored by Bhutan-based DK Bank. bKash Digital Bank is sponsored by shareholders of mobile financial services (MFS) provider bKash. Nova Digital Bank is sponsored by VEON, the parent company of Banglalink, and Square Group. Boost Digital Bank is sponsored by Axiata Ltd, the parent company of mobile operator Robi Axiata.
The board also decided to issue an LoI to Kori Digital Bank, which had previously received preliminary approval. This means five digital banks are now on course to begin operations, subject to receiving the LoI and completing the necessary formalities and meeting regulatory conditions.
According to Bangladesh Bank sources, applications were invited during the interim government for the establishment of digital banks. Applications for digital bank licences were accepted from September 1 to November 2, 2025, with a total of 13 institutions submitting applications.
The sponsors of the applicants included leading business groups, microfinance organisations, mobile operators and entrepreneurs associated with MFS providers.
However, final decisions on the applications were not made during the interim government due to various factors, including protests by Bangladesh Bank officials. Ahsan H Mansur was the central bank governor at the time.
Following the change of government, Ahsan H Mansur was replaced by Mostaqur Rahman as Bangladesh Bank governor. No fresh applications were invited for digital bank licences thereafter. Instead, the central bank reviewed the 13 applications submitted earlier and selected four institutions for preliminary approval.
The latest decision by the Bangladesh Bank board has given fresh momentum to the expansion of digital banking services in Bangladesh. However, after receiving the LoI, the banks will have to fulfil conditions set by Bangladesh Bank and complete other regulatory formalities before they can formally commence operations.