Reserve Bank of India imposes Monetary Penalty on Mynd Solutions Private Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹13,90,000 on Mynd Solutions Private Limited under Section 30 of the Payment and Settlement Systems Act, 2007. RBI said the entity had not complied with the Guidelines on Trade Receivables Discounting System (TReDS), updated as on July 02, 2018, because its non-promoter shareholding exceeded the 10% ceiling prescribed for TReDS operators. After considering the entity’s replies and oral submissions, RBI concluded that the charge of non-compliance was substantiated and warranted the penalty.