52 companies apply for digital bank license

A total of 52 domestic and foreign companies have filed their applications for the license to set up digital banks.

The companies include commercial banks, mobile financial services (MFS), ride-sharing and food delivery service providers, IT service providers and pharmaceutical companies, Bangladesh Bank (BB) Spokesperson Md Mezbaul Haque said today.

The deadline for filing the applications ended on August 17.

The central bank invited applications for digital bank from the entrepreneurs from June 21 this year.

As per the Bangladesh Bank rule, investors willing to set up a digital bank will have to have a minimum paid-up capital of Taka 125 crore and the capital will have to come from the sponsors.

Any entity willing to set up a digital bank must be a public limited company. The minimum shareholding stake of each sponsor shall be Taka 50 lakh, according to the central bank.

Earlier, the BB said the sponsors or directors must qualify for the Fit and Proper Test (FPT) criteria applicable to the proposed directors of digital banks.

In its guideline issued earlier, BB said digital banks will not be allowed to provide any service to clients directly through physical counters and cannot issue any physical instruments.

Likewise, digital banks would not be permitted to give out loans to carry out foreign trade and term loans to medium and large industries. (BSS)