BB Raises Digital Bank Capital Requirement to Tk300cr

Bangladesh Bank (BB) has increased the minimum paid-up capital requirement for establishing a digital bank to Tk300 crore, up from the previous Tk125 crore to strengthening the country's evolving digital banking ecosystem, Moreover BB’s intent to ensure greater financial stability and making faster digital banking sector. The decision, declared through a central bank circular today.

Digital bank licence will be issued following the Banking Company Act 1991, revised guideline. Bangladesh Payment and Settlement System Regulations 2014, will be addressed for payment Regulation service.
Digital banks, unlike conventional banks, will operate entirely online, maintaining only a headquarters without any branch network. However, they will still be required to follow the same business, governance, and operational standards applicable to traditional banks.
The guideline also makes it mandatory for digital banks to launch an Initial Public Offering (IPO) within five years of obtaining the licence, with the minimum IPO size matching the sponsors’ initial capital contribution.

Bangladesh Bank’s decision comes at a time when global banking trends are shifting towards technology-driven financial services, with many countries adopting branchless banking models to enhance customer convenience and operational efficiency. By tightening capital requirements, the central bank aims to ensure that only financially strong entities enter the market, thereby fostering sustainable growth in Bangladesh’s digital finance landscape.