The Finance Ministry has announced the criteria to apply for a virtual bank licence, with initial registered capital set at 5 billion baht.
According to Paopoom Rojanasakul, secretary to the finance minister, on March 4 the Royal Gazette published the criteria, requiring virtual banks to establish a headquarters in Thailand with initial registered capital of at least 5 billion baht in the first phase and 10 billion in the second phase.
Joint ventures are allowed to combine specific expertise.
After obtaining a licence, the capital increase to 10 billion baht can be conducted in phases over a period of five years until the maximum registered capital requirement has been reached.
Mr Paopoom said virtual banks will concentrate on providing financial services to people without regular income, small and medium-sized enterprises, underserved groups, unserved groups, people without access to credit, and people with informal debt.
Regarding the number of licences issued, the initial plan was to limit the number to three.
However, he said the final decision was to have no restrictions on the number of licences as the ministry wants to open up the process to qualified applicants, allowing the Bank of Thailand to consider an appropriate quantity that stimulates competition without jeopardising the stability of the financial system.
Virtual banks will be regulated by the central bank, similar to commercial banks, though they will also be protected by the Deposit Protection Agency, said Mr Paopoom.
Virtual banks cannot use deposit systems, credit systems, or internet banking in conjunction with other financial institutions, either domestic or international, he said.
Pornchai Thiraveja, director-general of the Fiscal Policy Office, said virtual bank applicants can submit applications to the central bank from March 20 to Sept 19, along with supporting documents and required information.
The central bank and the ministry are expected to jointly consider the applications for nine months after the application deadline.
After applicants are approved by the finance minister, they must prepare their financial stability, IT systems and risk management to commence operations within one year from the approval date, he said.
Mr Pornchai said promoting virtual banks aligns with the government's policy to promote a digital economy and develop financial infrastructure, aiming to propel Thailand to become a financial centre in Southeast Asia and increase public access to financial services.
The ministry wants virtual banks to provide additional financial service options, accelerate adaptation to the digital economy, and enhance the efficiency of the financial system, contributing to the economic development and growth of the country, he said.