The Bangladesh Bank has revealed it is preparing to form regulatory guidelines on the operation of digital banks in the country.
According to Bangladesh Bank deputy governor Abu Farah Md, once the guidelines are finalised, the central bank will be ready to issue licenses to operate a digital bank. He did note that the assessment would be carried out first before issuing licenses.
Central bank officials noted that the guidelines would be formulated under the Bank Company Act and compliance with all the instructions of the act would be a must for a digital bank.
The Dhaka Tribune noted that for instance, the paid-up capital requirement for a digital bank would be Tk500 crore as it is required for a conventional bank. In addition, other capital-related requirements for digital banks would also be the same for convential banks.
The publication noted that there would be no branch-based service of the digital banks. Instead, the banks will provide services, including lending and collection of deposits, online.
The Bangladesh Bank said it was working to create a way to let customers of a digital bank get physical currency in case of any emergency.
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