Staff Reporter :
Bangladesh Bank has placed the issue of granting new digital bank licenses on the agenda for its upcoming board meeting scheduled for August 27.
This development comes amid strong internal resistance within the central bank and lingering doubts surrounding the digital bank licenses awarded in 2023, a central bank executive director told reporters on Thursday.
At the last board meeting held on August 13, several directors opposed new approvals, pointing to the fragile condition of the banking sector, where many conventional banks are already struggling to meet deposit obligations.
They also argued that the country’s digital infrastructure is still not adequately prepared.
Despite this, the central bank may soon begin inviting fresh applications for digital banking licenses.
The first round of approvals took place in 2023, when 52 entities applied. After screening, nine applicants were shortlisted for the board’s consideration.
Among them, five – Nagad, Kori, Smart Digital Bank, North East Digital Bank, and Japan-Bangla Digital Bank – received Letters of Intent (LoI). Others, such as bKash, Digi Ten, and Digital Bank, were instead permitted to launch digital banking divisions, while the proposal from Pragati Life Insurance was rejected outright.
According to Bangladesh Bank sources, the new licensing process will be far more transparent and subject to stricter conditions compared to practices under the previous Awami League administration, when political influence often shaped decisions.
Following the change of government, Nagad’s license was suspended, while Kori Digital Bank is still awaiting its final clearance.
Reports indicate that the ownership of these ventures was structured through shell companies based in the US and Singapore, allegedly for money laundering purposes.
Nagad’s ownership is spread across five foreign firms registered in Singapore and the US – Finclusion Ventures (Singapore), Blue Heaven Ventures, Osiris Capital Partners, Zen Fintech, and Troope Technologies (US).
Meanwhile, Kori Digital Bank is controlled by four US-registered entities, though their actual ownership and financial standing remain unclear.
