(1) Any licensed institution of a lower
class which meets the following conditions may, with the approval of
the Rastra Bank, be converted into a licensed institution of a higher
class:
(a) If it has the capital prescribed by the Rastra Bank for a
licensed institution of such higher class;
(b) If it has been able to earn profits since five consecutive
years;
(c) If its total non-performing loan is within the limit
prescribed by the Rastra Bank;
(d) If it has met all conditions as prescribed by the Rastra
Bank.
(2) If, on receipt of the approval referred to in Sub-section
(1), the concerned licensed institution is required to amend its
memorandum of association and articles of association to carry on the
financial transactions of higher class, it shall amend the same in
accordance with the laws in force and make an application to the
Rastra Bank under this Act to obtain the license of higher class.