Reserve Bank Fines Mynd Solutions For Violating Guidelines

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1,390,000 on Mynd Solutions Private Limited for not complying with the Guidelines on Trade Receivables Discounting System (TReDS).

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

"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers," the RBI said in a statement.

The RBI said it observed that the non-promoter shareholding in the entity had exceeded the ceiling of 10 percent prescribed for TReDS operators.

Accordingly, a notice was issued to the entity advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions.

"After considering the entity's responses and oral submissions made during the personal hearing, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty," the RBI said in the statement

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