(1)Notwithstanding anything contained in Section 30, the Rastra Bank may, in any of the following circumstances, refuse to issue a license to any bank or financial institution to carry on the financial transactions:
(a) If, in view of the existing condition and potentiality of the banking or financial sector, it does not appear appropriate to grant a license to additional bank or financial institution to carry on the financial transactions;
(b) If, in the light of the situation mentioned in Clause (a), for the protection of the interests of depositors, it does not appear just and appropriate to issue a license to carry on the financial transactions;
(c) If it does not appear that the details or requirements referred to in Sections 29 and 30 have been completed.
(2) If there exists a situation where the license to carry on the financial transactions cannot be issued to any bank or financial institution pursuant to Sub-section (1), the Rastra Bank shall give a notice thereof, accompanied by the reason for the same, to the concerned bank or financial institution within one hundred twenty days
from the date of application. If the Rastra Bank has requested for any additional details within that period, such notice shall be given within ninety days from the date of receipt of such details.