Section 35: Issuance of License may be denied

1) Notwithstanding anything contained in Section 34, the Rastra Bank may deny issuing a license to operate banking and financial transactions to a bank or financial institution in any of the following circumstances:-

(a) If it causes adverse effects on the stability, fair competition and credibility of the financial system of Nepal,

(b) If it is not reasonable and appropriate to issue a license for the operation of financial transactions for the protection of the interests of depositors,

(c) If the infrastructure to operate banking and financial transactions are not completed,

(d) If other particulars or conditions pursuant to this Act are not found to be completed.

2) The Rastra Bank shall, in case there is a situation that the license to operate banking and financial transactions cannot be issued according to this Section, inform the concerned bank or financial institution stating the reasons thereof within ninety days of the date of filing of the application.