RBI imposes penalty of Rs 13.9 lakh on Mynd Solutions for non-compliance

Non-promoter shareholding in the company exceeded the 10% ceiling prescribed for TReDS operators

The Reserve Bank of India (RBI) has penalised Mynd Solutions Private Limited Rs 13.9 lakh for not complying with its guidelines on Trade Receivables Discounting System (TReDS).

The central bank said that the non-promoter shareholding in the company exceeded the ceiling of 10 per cent prescribed for TReDS operators. A notice was issued to the firm, asking it to show cause as to why a penalty should not be imposed.

RBI, after considering Mynd’s responses and oral submissions made during a personal hearing, concluded that the charge of not complying with its directions was substantiated and warranted imposition of monetary penalty.

The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007 (PSS Act).