Bangladesh Bank (BB) today reviewed the progress of its digital bank licensing initiative but did not grant primary approval to any applicants, following protests from a group of BB officials.

The central bank’s Banking Regulation and Supervision Department-1 had placed an agenda titled “Selection of eligible applicants for establishing digital banks” before the board of directors during a meeting today.

The meeting was presided over by BB Governor Ahsan H Mansur.

After the session, Arief Hossain Khan, executive director and spokesperson of BB, told The Daily Star that the agenda was meant only to update board members on the progress of the digital bank initiative.

“There was no issue of approval, as the matter has not yet reached that stage,” he added.

Earlier in the day, officials representing the Bangladesh Bank Officers’ Welfare Council raised objections against the governor, accusing him of a “hasty” move to grant digital bank licences.

The council held a press conference to protest the decision.

Its leaders said that following the 13th national election on February 12, the process of swearing in newly elected representatives and forming a new government is still underway.

“At this moment, the governor has called an emergency board meeting to issue a digital bank licence. Granting such a licence urgently during a transitional period could raise questions about the transparency and neutrality of the central bank’s operations,” said Golam Mostafa Srabon, general secretary of the council.

AKM Masum Billah, president of the council, alleged that a group seeking a digital bank licence had previous links to the current governor, who once served as chairman of one of the group’s banks.

He said this goes against the fundamental principle of the central bank’s neutrality.

Bangladesh Bank reopened applications for digital bank licences last year. Thirteen entities applied, including mobile financial service providers, telecom operators, commercial banks, and large conglomerates.

Several applicants have foreign partners or prior experience running digital banks abroad. The list includes collaborations with bKash, Robi, VEON -- the parent company of Banglalink -- and Akij Resource.