Fifty-two companies, including banks, fintech firms, and mobile financial service providers, have applied for digital banking licenses in Bangladesh.

The Bangladesh Bank has confirmed that the application filing deadline ended on August 17, and the central bank is currently reviewing the proposals.

According to the Bangladesh 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, according to the Bangladesh Bank.

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 would not be allowed to provide any service to clients directly through physical counters and could not 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.