Section 35
Suspension And Cancellation Of License
(1) If any licensed institution does an act in contravention of the Nepal Rastra Bank Act, 2058 (2002) or this Act or the rules or bye-laws framed thereunder or fails to comply with the orders or directives issued by the Rastra Bank or fails to do any act required to be done by it taking into account the interests of depositors, the Rastra Bank may, specifying a certain period, suspend the license obtained by the licensed institution to carry on the financial transactions pursuant to this Act, or fully or partially withhold or freeze the business of the bank or financial institution or of any of its offices.
(2) The Rastra Bank may cancel the license obtained by a licensed institution to carry on the financial transactions pursuant to this Act in any of the following circumstances:
(a) If the concerned licensed bank or financial institution requests for the cancellation of its license;
(b) If it fails to carry on the financial transactions within six months from the date of receipt of the license;
(c) If it stops carrying on the financial transactions since more than one month ago continuously;
(d) If it carries on the financial transactions in such a manner as to be contrary to the rights and interests of depositors;
(e) If it violates the Nepal Rastra Bank Act, 2058 (2002) or this Act or the rules and bye-laws framed thereunder;
(f) If it violates the conditions prescribed by the Rastra Bank;
(g) If it fails to comply with the orders or directives issued by the Rastra Bank;
(h) If it becomes insolvent;
(i) If the bank or financial institution is found to have obtained the license by submitting false details;
(j) If the licensed institution is amalgamated with another bank or financial institution.
(3) If any bank or financial institution duly makes an application for the cancellation of its license pursuant to Clause (a) of Sub-section (2), the Rastra Bank shall make a decision thereon within forty-five days from the date of such application.
(4) A notice in writing of the decision referred to in Sub- section (3) and the grounds of such decision shall be provided to the concerned bank or financial institution.
(5) If a decision is made to cancel a license pursuant to this Section, the Rastra Bank shall publish a public notice thereof.
(2) The Rastra Bank may cancel the license obtained by a licensed institution to carry on the financial transactions pursuant to this Act in any of the following circumstances:
(a) If the concerned licensed bank or financial institution requests for the cancellation of its license;
(b) If it fails to carry on the financial transactions within six months from the date of receipt of the license;
(c) If it stops carrying on the financial transactions since more than one month ago continuously;
(d) If it carries on the financial transactions in such a manner as to be contrary to the rights and interests of depositors;
(e) If it violates the Nepal Rastra Bank Act, 2058 (2002) or this Act or the rules and bye-laws framed thereunder;
(f) If it violates the conditions prescribed by the Rastra Bank;
(g) If it fails to comply with the orders or directives issued by the Rastra Bank;
(h) If it becomes insolvent;
(i) If the bank or financial institution is found to have obtained the license by submitting false details;
(j) If the licensed institution is amalgamated with another bank or financial institution.
(3) If any bank or financial institution duly makes an application for the cancellation of its license pursuant to Clause (a) of Sub-section (2), the Rastra Bank shall make a decision thereon within forty-five days from the date of such application.
(4) A notice in writing of the decision referred to in Sub- section (3) and the grounds of such decision shall be provided to the concerned bank or financial institution.
(5) If a decision is made to cancel a license pursuant to this Section, the Rastra Bank shall publish a public notice thereof.