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Published : 31 Jul 2023, 01:09 AM
Bangladesh Bank has extended by 16 days the deadline for submission of application to open the first digital banks of the country as the authorities have not yet received applications.
The central bank, which opened a web portal for the application submission on Jun 21, extended the deadline on Sunday to Aug 17.
In a statement, the central bank said to extend the deadline, it considered the time needed to prepare a full and standard application with all required papers.
Sarwar Hossain, a spokesman for the Bangladesh Bank, said the box for the applications on the web portal will be unlocked after the end of the deadline.
Mobile financial service giants bKash and Nagad have shown interest in participating in the digital banking revolution. However, the firms have been treading cautiously as they continue to analyse the policies and requirements set forth by the Bangladesh Bank before finalising their applications.
“We’re interested in the digital bank, but it hasn’t been possible to submit an application yet. We’re still preparing,” said Shamsuddin Haider, head of bKash's corporate communications and PR department.
Zahidul Islam, Nagad's head of public relations, said: “Nagad hasn’t submitted the application, but it will.”
The Bangladesh Bank has imposed a requirement of Tk 1.25 billion as paid-up capital to ensure that only financially stable companies can acquire a digital banking licence. Moreover, the central bank has made it clear that loan defaulters will be excluded from the pioneering initiative.
Despite the lukewarm response to the web portal so far, the groundwork for the digital banking initiative was laid in large part by the success of existing mobile financial services in Bangladesh.
bKash, Nagad, Rocket, mCash, and upay paved the way by facilitating seamless, low-value transactions.
These services, commonly referred to as mobile banking services, can be utilised through either an internet connection or a mobile network.
Currently, 13 companies are providing mobile financial services, collectively amassing over 200 million customer accounts.
In Bangladesh, the MFS network is operated by over 1.1 million agents and processes an average of more than 10 million transactions, totalling around Tk 22.95 billion, each day.
The digital banking initiative aims to further boost the volume and value of transactions conducted through these platforms.
With a range of services planned, including convenient bill payments for electricity, gas, water, student fees, service charges, and government fees, the digital banking initiative aims to provide faster and more affordable options for customers compared to traditional payment methods.
