Bangladesh, Sept. 24 -- Bangladesh Bank's board of directors has agreed to grant initial approval to five digital banks, paving the way for the central bank to issue Letters of Intent (LoIs) to the proposed lenders.

Advertisement The banks will be able start online operations after completing the necessary formalities following the issuance of the LoIs.

The decision was made at a meeting of the central bank's board of directors held on Thursday, chaired by Governor Md Mostaqur Rahman.

The digital banks that received initial approval are Digital Banking of Bhutan, sponsored by Bhutan's DK Bank; bKash Digital Bank, sponsored by the shareholders of bKash; Nova Digital Bank, backed by VION, the parent company of Banglalink, and Square Gro...