Bangladesh Bank has raised the minimum paid-up capital for digital banks to Tk 3 billion, more than double the Tk 1.25 billion set in its June 2023 guidelines.

The central bank issued a circular on Thursday to managing directors and chief executives of all scheduled banks, confirming the revised threshold.

Officials said the regulator is preparing to invite new applications for digital banking licences, with the matter scheduled for board discussion on 27 August, according to bdnews24.com.

“Work is underway on this. Revisions are being made to the digital banking guidelines, though I do not know exactly which points are being changed,” said central bank spokesperson Arief Hossain Khan.

Entrepreneurs seeking conventional banking licences must currently hold at least Tk 5 billion in capital. Paid-up capital represents the portion of issued shares fully paid by shareholders.

Bangladesh Bank first opened the door to digital banks in June 2023, approving guidelines that required Tk 1.25 billion in capital. It received 52 applications and shortlisted nine.

In August last year, the central bank issued letters of intent to Nagad Digital Bank PLC and Kori Digital Bank PLC. But following political changes, allegations surfaced that some ventures were backed by laundered funds abroad. Bangladesh Bank later suspended Nagad’s licence and has yet to grant one to Kori.

The regulator is now reviewing the framework before relaunching the licensing process.