Digital Banks - a New Journey in Financial Sector of Bangladesh
Digital Banks will more boost up Bangladesh's financial system though it is yet in initial stage. Digital Bank will provide banking products and services to people by means of artificial intelligence system. It is the digital banking platform where all products and services will be delivered through apps/software or computer systems or digital devices. As per Bangladesh Bank guidelines, Digital Banks (DB) will have no branch or sub-branch or agent, no ATM booth, no physical transactions, can't issue any physical instruments, and can't provide over-the-counter services. They will have only Head Office in Bangladesh; from the Head Office they will provide full-fledged digital banking services to customers through digital devices. Digital Banks cannot participate in foreign trade business but they can receive foreign remittances and also can manage foreign currency accounts.
In Bangladesh, Digital Banks (DB) will be governed by the Bank Company Act, 1991. Already 40+ companies have submitted their application to Central Bank, Bangladesh Bank, for the licence to set up digital banks in the Country among them the applicants include - DG10 Bank PLC, bKash Digital Bank PLC, Digital Bank PLC, Upay Digital Bank PLC, Nagad Digital Bank PLC, Elegant Digital Bank PLC, Desh Digital Bank PLC, North West Digital Bank PLC, Ekota Digital Bank PLC, Shadin Digital Bank, Agami Digital Bank PLC, JRF Digital Bank (BD) PLC, Uddipan Digital Bank Ltd, and many more. To get licence for Digital Bank, the minimum paid-up capital required of Tk 125 crore (Tk1.25 billion) when a conventional bank requires Tk500 crore (Tk 5 billion). At present, there are 61 conventional banks are functioning in Bangladesh. Digital banks will be additional banks to provide banking services to customer.
The Digital Banks are highly recommended to develop strong and secured ICT infrastructure and application systems. The Central Bank guidelines also required, for the Digital Banks, to setup strong ICT applications system, quality data centres, and instant disaster recovery system. Creating a strong and secure ICT infrastructure and applications can boost up Digital Banks' products and services and its popularity in Bangladesh.
Published Date: 28/08/2023
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