Time Digital Report:
The deadline for submitting application for licence of digital bank has been extended to August 17 this year, Bangladesh Bank said today.


"Bangladesh Bank (BB) has extended the deadline to help entrepreneurs give more time to prepare detail and quality applications and collect all necessary documents," Md Sarwar Hossain, assistant spokesperson of the BB told The Daily Star over phone.


The BB invited applications for digital bank from the entrepreneurs from June 21 this year and the deadline was set to end on August 1, 2023.


As per the central bank's rule, investors willing to set up a digital bank will have to have a minimum paid-up capital of Tk 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 Tk 50 lakh, it said.

The central bank 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.

The guideline says a digital bank must go public within five years after getting the licence from the central bank.

The amount of capital to be raised through initial public offerings cannot be less than the paid-up capital amount.

The rule bars loan-defaulting companies, persons and their family members from becoming sponsor shareholders of digital banks.

No sponsor shareholder will be able to transfer shares without the prior approval of the BB within five years of operation.

The guideline has kept the number of members from the same family who will be given permission to sit on the board in line with the Bank Company Law