The board of directors of Bangladesh Bank has granted preliminary approval for the establishment of four new digital banks, while also issuing a Letter of Intent (LoI) to Kori Digital Bank, which had earlier received initial clearance.

The decision was taken at Thursday’s board meeting chaired by Governor Mostakur Rahman. Following the LoI, the banks will be able to complete necessary procedures before commencing operations.

The four institutions selected for preliminary approval are: Digital Banking of Bhutan, bKash Digital Bank, Nova Digital Bank, and Boost Digital Bank.

• Digital Banking of Bhutan is backed by Bhutan’s DK Bank.
• bKash Digital Bank is promoted by bKash shareholders.
• Nova Digital Bank is a joint venture of Banglalink’s parent company VEON and Square Group.
• Boost Digital Bank is sponsored by Axiata Limited, parent of mobile operator Robi Axiata.

Earlier, Kori Digital Bank had received preliminary approval; this time, the board decided to issue its LoI.

According to central bank sources, applications for digital bank licenses were invited during the interim government between September 1 and November 2, 2025. A total of 13 institutions applied, including leading industrial groups, microfinance institutions, mobile operators, and mobile financial service providers.

However, final approval was not granted at that time due to protests by Bangladesh Bank officials and other reasons. The then governor was Ahsan H. Mansur.

After the BNP government assumed office, Mansur was replaced by Mostakur Rahman as governor. Without calling for fresh applications, the board has now selected four institutions from the earlier submissions to receive preliminary approval for launching digital banking operations.