RBI imposes penalty of ₹13.90 lakhs on Mynd Solutions
1 min read . Updated: 29 Dec 2022, 07:03 PM IST
Premium- The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007
The Reserve Bank of India (RBI) on Thursday said that it has imposed a penalty of ₹13 lakh on Mynd Solutions Private Limited for not complying with the guidelines on Trade Receivables Discounting System (TReDS).
The central bank has imposed a penalty of ₹13,90,000 on Mynd Solutions Private Limited.
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).
The central bank observed that non-promoter shareholding in the entity had exceeded the ceiling of 10 per cent prescribed for TReDS operators.
Accordingly, notice was issued to the on Mynd Solutions Private Limited advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.
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.
"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," said RBI.
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).
TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).
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