(1) 29 If any institution violates any direction given pursuant to Section 18, the Bank may warn it or restrict any act of the institution for reforms. If institution violates such direction for three times or does any of the following acts, the Bank may suspend or cancel the license of such an institution.
(a) If the institution abandons the act of financial intermediation,
(b) If the institution misappropriates the funds of the institution or does not use the amount in the purpose for which it has been obtained,
(c) If the institution has failed to make reforms or make any specific provision in relation to any activity with specification of the period,
(d) 30 If the institution fails to obtain renewal pursuant to the Association Registration Act, 2034 (1977) and Section 7 of this Act.
(2) Prior to issuing order to cancel the license pursuant to Sub-section (1), the Bank may, if it considers necessary, make necessary inquiry or examination in relation thereto.
(3) Prior to cancelling the license pursuant to Sub-section
(1), the Bank shall give an opportunity to the concerned institution to submit explanation.