Section 5
Power To Refuse To Grant Approval
(1) The Rastra Bank may refuse to grant prior approval for the incorporation of a bank or financial institution in any of the following circumstances:
(a) If the name of the proposed bank or financial institution is identical with the name of any bank or financial institution which has already been registered and is still in existence;
(b) If the name of the proposed bank or financial institution or the financial transactions to be carried on by it appears to be improper or undesirable in view of public interest, decency, etiquette, religion, nationalities or communities;
(c) If the objectives of the proposed bank or financial institution are contrary to the laws in force;
(d) If the incorporation of the bank or financial institution seems to be technically inappropriate;
(e) If a study of the feasibility study report, particulars and documents and information on other infrastructures submitted by the proposed bank or financial institution does not provide a ground to believe that it can carry on financial transactions in a healthy and competitive manner;
(f) If application for the registration of the memorandum of association and articles of association has not been made in the names of all promoter members of the proposed bank or financial institution;
(g) If all promoters of the proposed bank or financial bank or financial institution have not signed the memorandum of association and articles of association, also setting out their names and addresses, in the presence of any one witness, and the name and address of the witness has not been set out;.
(h) If every promoter of the proposed bank or financial institution has not agreed to subscribe at least one share of that bank or financial institution;
(i) If every promoter of the proposed bank or financial institution has not clearly specified the number of shares to be subscribed by him or her while affixing his or her signature on the memorandum of association;
(j) If the fees required to be paid and the documents to be submitted pursuant to Section 4 have not been paid or submitted;
(k) If any condition prescribed by the Rastra Bank is not fulfilled.
(2) If the Rastra Bank refuses to register the memorandum of association and articles of association of the proposed bank or financial institution in any of the circumstances referred to in Sub-section (1), it shall give a notice thereof to the applicant.
(a) If the name of the proposed bank or financial institution is identical with the name of any bank or financial institution which has already been registered and is still in existence;
(b) If the name of the proposed bank or financial institution or the financial transactions to be carried on by it appears to be improper or undesirable in view of public interest, decency, etiquette, religion, nationalities or communities;
(c) If the objectives of the proposed bank or financial institution are contrary to the laws in force;
(d) If the incorporation of the bank or financial institution seems to be technically inappropriate;
(e) If a study of the feasibility study report, particulars and documents and information on other infrastructures submitted by the proposed bank or financial institution does not provide a ground to believe that it can carry on financial transactions in a healthy and competitive manner;
(f) If application for the registration of the memorandum of association and articles of association has not been made in the names of all promoter members of the proposed bank or financial institution;
(g) If all promoters of the proposed bank or financial bank or financial institution have not signed the memorandum of association and articles of association, also setting out their names and addresses, in the presence of any one witness, and the name and address of the witness has not been set out;.
(h) If every promoter of the proposed bank or financial institution has not agreed to subscribe at least one share of that bank or financial institution;
(i) If every promoter of the proposed bank or financial institution has not clearly specified the number of shares to be subscribed by him or her while affixing his or her signature on the memorandum of association;
(j) If the fees required to be paid and the documents to be submitted pursuant to Section 4 have not been paid or submitted;
(k) If any condition prescribed by the Rastra Bank is not fulfilled.
(2) If the Rastra Bank refuses to register the memorandum of association and articles of association of the proposed bank or financial institution in any of the circumstances referred to in Sub-section (1), it shall give a notice thereof to the applicant.