Recorded RBI impact
Fine: Rs 13.9 L
Monetary penalty · Fresh imposition
Published by RBI
29 Dec 2022
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.
Why RBI Acted
RBI imposed a monetary penalty under Section 30 of the Payment and Settlement Systems Act, 2007 for non-compliance with the Guidelines on Trade Receivables Discounting System (TReDS), updated as on July 02, 2018. The specific deficiency cited was that the entity’s non-promoter shareholding had exceeded the 10% ceiling prescribed for TReDS operators. RBI stated that the action was based on deficiencies in regulatory compliance and not meant to pronounce upon the validity of any transaction or agreement with customers.
Operating Impact
Mynd Solutions Private Limited must absorb the monetary penalty and ensure future compliance with RBI’s TReDS ownership norms, including the 10% ceiling on non-promoter shareholding. The order does not by itself invalidate customer transactions or agreements, but it signals regulatory non-compliance that could attract further action if not corrected.
Regulatory Basis
- Section 30 of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Fine: Rs 13.9 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity