Written by The Banking Post
The push to launch digital banks in Bangladesh has stalled once again, with the central bank waiting for policy direction from the newly elected government—leaving aspiring operators in prolonged uncertainty.
Officials at Bangladesh Bank (BB) say the licensing process is effectively on hold as the regulator seeks clarity on the government’s position regarding virtual banking. The delay has raised concerns among bankers and technologists, who fear setbacks for AI-driven banking services seen as key to building a cashless economy.
According to BB sources, 13 entities—including mobile financial service providers, telecom operators, banks and conglomerates—applied for digital bank licences. After evaluation, five were shortlisted and placed before a board meeting just ahead of the February 12 general election.
However, the meeting stopped short of making any decision following strong اعتراض from a section of central bank officials over the rushed move to issue licences. Soon after, then governor Ahsan H. Mansur was replaced by Mostaqur Rahman, further slowing progress.
“Since then, the process has virtually come to a halt as the central bank is trying to understand the new government’s view,” said a BB official.
The new governor recently held an internal briefing on the matter ahead of an upcoming visit to the World Bank’s Spring Meetings, but no timeline for resuming the licensing process has been set.
The uncertainty has left applicants in limbo. bKash applied for “bKash Digital Bank”, while VEON and Square Group jointly proposed “Nova Digital Bank”. Robi Axiata sought approval for “Boost”, and Akij Resources applied for “Munafa Islami Digital Bank”.
Several other proposals—from local conglomerates, NGOs, microfinance institutions and foreign investors—remain under consideration.
Executives of proposed digital banks say the prolonged delay has disrupted preparations and raised uncertainty over investments. “The delay has badly impacted our plans. It’s frustrating, but we cannot speak openly as it may affect our chances,” said one applicant.
Bangladesh Bank first introduced digital banking guidelines in June 2023 and received 56 applications. Two entities—Nagad Digital Bank and Kori Digital Bank—were initially issued letters of intent but failed to meet regulatory conditions.
Following political changes in 2024, the central bank leadership was reshuffled and the process was reset, with fresh applications invited in August. Despite renewed interest, the latest phase now risks drifting into further uncertainty without a clear policy signal.
