Economy Desk: 52 domestic and foreign institutions have applied to make a new type of ‘digital bank’. These include commercial banks, mobile financial service providers (MFS), ride-sharing, food delivery, information technology service providers, and domestic and multinational companies such as pharmaceutical companies. Organizations have applied individually to get a license, and there are also joint ventures.
In this regard, Bangladesh Bank Executive Director and Spokesperson Majbaul Haque said that the web portal of Digital Bank has been opened. 52 institutions applied within the stipulated time. It is more than we expected. These applications will be scrutinized. The Central Bank Board will issue LOIs (letters of intent) for licenses to those who have applied and are eligible as per the policy.
The application for a digital bank has been made through the digital method rather than the traditional method of submitting paper documents. That is, all the necessary documents have to be submitted digitally. The application fee will be Tk 5 lakh, which is non-refundable. 125 crores will be required for the license of this bank, and at least 50 crores will be required to become a director. Bangladesh Bank opens a new web portal to take applications from those interested in starting this new type of bank.
Earlier, on June 14, the Board of Directors of Bangladesh Bank approved the launch of ‘Digital Bank’. June 15 issued a policy in this regard. In continuation of this, the central bank launched a web portal on June 21 to submit online applications for digital banks. Interested parties are asked to apply for the license by August 1. But as no one applied within the stipulated time, the application period was extended until August 17. According to the central bank policy, digital banks will not have any branch, sub-branch, ATM booth, or any other establishment. Customers can transact using mobile phones or apps. They do not have to physically visit any branch of the bank.
This bank will operate according to bank company law and policies. The policy also states that entrepreneurs of digital banks must enter into a capital preservation agreement. If a bank falls short of capital, it has to be provided to entrepreneurs. No debtor can become a digital bank entrepreneur. Even if any of the entrepreneurs of Digital Bank are pending in court for default, they will not be considered eligible to apply.
Incidentally, 10 banks in the private sector of the country have taken the initiative to make a digital bank. Which is named ‘DG10 Bank Plc’. This is the first such initiative by 10 banks in the country so far. The banks are: City Bank, Mutual Trust Bank (MTB), Eastern Bank Limited (EBL), Dutch-Bangla Bank Limited (DBBL), Trust Bank, Prime Bank, Pubali Bank, National Credit and Commerce Bank (NCCB), Mercantile Bank, and Midland Bank. Four state-owned banks also want to make a digital bank.
These are: Golden, Agrani, Janata, and Silver. Also, mobile financial services (MFS) companies ‘Nagad’, ‘Bikash’, mobile phone operator company Banglalink, and ride-sharing company ‘Pathao’ have also applied for digital banking.
