Digital bank licencing deadline extended

TV24 Desk: The Bangladesh Bank has extended the application deadline for digital bank licence till August 17, the central bank’s assistant spokesperson Md Sarwar Hossain confirmed the matter on Sunday.

The central bank on June 21 invited applications for establishing digital banks and set the deadline for submitting applications till August 1.
In the notice inviting entrepreneurs to apply for a digital bank licence, the banking regulator had specified a non-refundable application processing fee of Tk 5 lakh.

The guidelines for issuing digital bank licences were approved by the central bank
board of directors on June 14, under the Bank Companies Act of 1994, to promote financial inclusion.

The minimum capital requirement for a digital bank has been set at Tk 125 crore, compared to Tk 500 crore for conventional banks. Each sponsor of a digital bank is required to hold at least Tk 50 lakh in shares.

The guidelines also state that the sponsors’ contributions to the share capital must come from their declared net worth to the tax authorities, and not from borrowed funds or other sources.

Source: businesspost


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