bKash, Robi among four entities receive initial approval for digital banks

The Bangladesh Bank board has agreed to grant initial approval for the establishment of four digital banks in the country. The central bank will now issue letters of intent (LoIs) to the banks. They will be able to begin operations after completing the remaining formalities.

The decision was taken at a meeting of the Bangladesh Bank board today, chaired by Governor Mostaqur Rahman.

The four banks receiving initial approval are Digital Banking of Bhutan, sponsored by Bhutan’s DK Bank; bKash Digital Bank, sponsored by the shareholders of bKash; Nova Digital Bank, sponsored by VEON, the parent company of Banglalink, and Square Group; and Boost Digital Bank, sponsored by Axiata Limited, the parent company of Robi. The board also decided to issue a letter of intent (LoI) to Kori Digital Bank, which had already received initial approval.

Earlier, during the interim government’s tenure, Bangladesh Bank invited applications to establish digital banks. Thirteen entities applied at the time. Their ownership structures included leading industrial groups, microfinance institutions, mobile operators and mobile financial services (MFS) providers, among others.

Bangladesh Bank accepted applications for digital bank licences from 1 September to 2 November 2025. However, amid various issues, including protests by Bangladesh Bank officials, the approvals were not granted during the interim government’s tenure. Ahsan H Mansur was then the central bank governor.

After the BNP formed the government, Mansur was removed and Mostaqur Rahman was appointed governor. No fresh applications were invited afterwards. Instead, the Bangladesh Bank board has agreed to allow four entities from among the earlier applicants to proceed with establishing digital banks.