(1) In cases where, the Rastra Bank finds, while carrying out inquiry into the application received pursuant to Section 33 and documents and details enclosed therewith, that all requirements to carry out banking and financial transactions according to this Act have been met, the Rastra Bank may issue a license of any class based on the classification of the bank or financial institution as referred to in Section 37 within one hundred twenty days to carry out banking and financial transactions.
(2) The Rastra Bank shall, before issuing a license pursuant to Sub-Section (1), ascertain the following matters:-
(a) That granting of a license for carrying out banking and financial transactions will result in development of healthy competition and effective financial intermediary transactions thereby the result in protection of interests of depositors,
(b) That it is capable of carrying out banking and financial transactions subject to this Act, Rules, Byelaws framed thereunder, Orders or Directives issued as well as Memorandum of Association and Articles of Association,
(c) That the documents and details submitted along with application pursuant to Section 33 for a license are sufficient and adequate physical infrastructures in place,
(d) That any official appointed or involved 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 cases where the Rastra Bank has specified the date of commencement of a license while issuing a license to carry out banking and financial transactions, the license shall be deemed to have been commenced from that specified date and if no such date has been specified, the license shall be deemed to have been commenced from the date of the issuance of the license.