Archive · 26 Sep 2025
RBI Orders Simpl to Halt Payments Due to Regulatory Issues
Simpl, a buy-now-pay-later (BNPL) startup, has been ordered by India's central bank, the RBI, to stop its payment services.
The RBI found that Simpl was running its payment system without proper permission, which is against the law.
This means Simpl can't let people make purchases now and pay later anymore.
This action follows an investigation by the Enforcement Directorate (ED) into Simpl for possible financial rule breaking.
The ED suspects Simpl moved money in ways that did not follow regulations.
Simpl offers services to many customers, including online purchases.
The RBI's action could greatly impact Simpl's business.
RBI ordered Bengaluru-based BNPL startup Simpl to halt all payment operations.
The order cited lack of authorization under the Payment and Settlement Systems (PSS) Act, 2007.
Simpl was operating as a payment system operator without the mandatory Certificate of Authorisation.
The Enforcement Directorate (ED) is also probing the company for alleged forex violations.
Simpl had raised approximately $83 million from investors and has over 26,000 partners.
- Who
- The Reserve Bank of India (RBI) and Simpl
- What
- RBI ordered Simpl to cease payment-related operations.
- When
- The RBI order was issued on September 25, 2025.
- Where
- Bengaluru, India
- Why
- Simpl was operating without the mandatory Certificate of Authorisation under the Payment and Settlement Systems (PSS) Act, 2007.
Simpl's perspective
RBI and ED's perspective
Compliance with regulations
Simpl's perspective
Simpl positioned itself as a frictionless payments utility, not a regulated lender.
RBI and ED's perspective
RBI determined Simpl's operations fall within the scope of activities requiring central bank authorization.
Fund Usage
Simpl's perspective
N/A - Article does not contain Simpl's side.
RBI and ED's perspective
ED alleges that Simpl diverted funds meant for technology services into financial services without proper clearance.
- Company
- Simpl (One Sigma Technologies Pvt Ltd)
- Location
- Bengaluru, India
- RBI Order Date
- September 25, 2025
- Alleged Violation
- Operating without required authorization under the Payment and Settlement Systems Act, 2007
- ED Probe
- Ongoing investigation into alleged forex violations
- Founder
- Nitya Sharma and Chaitra Chidanand
- Funding
- $83 million from global investors
- BNPL Model
- Allows customers to make instant purchases and pay later, usually within 15 days