# Bank of Thailand sets rules for Application and Issuance of a Virtual Bank License - Link: https://www.thailand-business-news.com/banking/130896-bank-of-thailand-sets-rules-for-application-and-issuance-of-a-virtual-bank-license - Published: 2024-03-13T15:57:36+07:00 - Author: Abhishek Prakash The Bank of Thailand will be accepting applications for virtual bank licenses from March 20, 2024, to September 19, 2024, aiming to introduce new value propositions and better serve unserved and underserved customer segments. * Prospective virtual banks will be assessed based on their qualifications, capabilities, and potential to operate sustainably while offering new value propositions, digital- driven services, and managing risks effectively. * Successful applicants are expected to be announced in the first half of 2025 and will need to prepare for virtual bank operations within one year from the date of approval, focusing on IT systems and risk management tools. Mr. Somchai Lertlarpwasin, Assistant Governor of the Financial Institutions Policy Group, announced that the Royal Gazette published the Notification of the Ministry of Finance on 4 March 2024. This notification outlines the rules, procedures, and conditions for applying for and obtaining a virtual bank license in Thailand. The objective is to allow technology and data experts to offer financial services through digital channels, catering especially to underserved retail and SMEs customers. ADVERTISEMENT The move is expected to enhance customer experience and promote healthy competition in the financial institution system without jeopardizing financial stability or consumer protection. The Bank of Thailand’s recent decision to set rules for the application and issuance of virtual bank licenses is a crucial step towards improving customer experience and fostering healthy competition in the financial industry. By allowing new players to enter the market, customers will benefit from a wider range of innovative financial products and services. This move will also encourage existing banks to ramp up their efforts to stay competitive, ultimately raising the overall standard of banking services in the country. # Criteria for Virtual Bank License Applicants Prospective virtual bank applicants will be evaluated on various criteria by the Bank of Thailand (BOT) to ensure their sustainable operations and contributions to the Thai economy and financial system. These criteria include experience and resources in operating virtual bank business, governance and capability, digital- driven business expertise, IT system management, data management capabilities, risk management, and the capability of major shareholders to provide financial support. # Application Process and Timeline Interested applicants can submit their application for a virtual bank license to the BOT from 20 March 2024 to 19 September 2024. Detailed information on the application process and requirements can be found on the BOT website. The BOT will also conduct an information session on 19 March 2024 to provide further details on the Notification of the Ministry of Finance and regulatory requirements applicable to virtual banks. Registration for the information session is open until 13 March 2024. # Expected Outcome and Operational Timeline Successful applicants are expected to be announced within the first half of 2025. Upon approval, they must undertake preparations across various aspects, including IT systems and risk management tools, to commence virtual bank operations within 1 year from the date of approval. ### Related**Posts** ### 󠀁[USD to THB Exchange Rate Today: Thai Baht Moves with Global Market Trends](https://www.thailand-business-news.com/banking/331689-usd-to-thb-exchange-rate-today-thai-baht-moves-with-global-market-trends)󠁿 ### 󠀁[Bank of Thailand Unveils Framework to Shield Financial Sector from Illicit Activities](https://www.thailand-business-news.com/banking/328409-bank-of-thailand-unveils-framework-to-shield-financial-sector-from-illicit-activities)󠁿 ### 󠀁[Tokenised Deposits vs Stablecoins: Why Thailand’s Cautious Path Differs from Hong Kong and Singapore](https://www.thailand-business-news.com/banking/321239-tokenised-deposits-vs-stablecoins-why-thailands-cautious-path-differs-from-hong-kong-and-singapore)󠁿 ### 󠀁[Thailand’s economy in July saw growth, boosted by the momentum of the global technology and AI cycle](https://www.thailand-business-news.com/banking/326128-the-thai-economy-in-july-expanded-from-the-previous-month)󠁿 The move to introduce virtual bank licenses in Thailand is aimed at bringing better customer experience, stimulating healthy competition, and serving the needs of depositors, customers, and the Thai economy without posing risks to financial stability. Interested parties are encouraged to stay updated on the BOT website for further details and instructions regarding the application process and requirements. [Bank of Thailand](https://www.bot.or.th/en/news-and-media/news/news-20240305.html)