Section 34: License may be granted for carrying out Banking and Financial Transactions

1) In case the Rastra Bank finds, while carrying out an inquiry on the application submitted pursuant to Section 33 and documents and details enclosed therewith, that all requirements to carry on the banking and financial transaction under this Act are met, the Rastra Bank may issue a license of any class based on the classification of bank or financial institution pursuant to Section 37 within one hundred twenty days to operate banking and financial transaction.

2) Before issuing a license pursuant to sub-section (1), the Rastra Bank shall ascertain the following matters:-

(a) Granting of license for the operation of a bank or financial institution will result in the development of healthy competition and effective financial intermediary transactions, and it will result in the protection of the interests of depositors,

(b) It is capable of carrying on banking and financial transactions subject to this Act, Rules, Byelaws framed thereunder, Orders or Directives as well as Memorandum of Association and Articles of Association,

(c) The documents and details submitted along with the application pursuant to Section 33 for a license are sufficient, and physical infrastructures are adequate,

(d) Any official appointed or included or to be appointed or to be included in the bank or financial institution is capable of carrying out banking and financial transactions.

3) In case the Rastra Bank has specified the date of enforcement of the license while issuing a license to carry on banking and financial transactions, the license shall be deemed to have been activated from that specified date, and if no such date has been specified, the license shall be deemed to have been activated from the date of issuance of the license