RBI Orders BNPL Fintech Simpl to Halt Payment Operations
The Reserve Bank of India (RBI) has instructed Bengaluru-based buy-now-pay-later (BNPL) fintech Simpl to stop all payment operations
with immediate effect. The order cites non-compliance with the
Payment and Settlement Systems (PSS) Act, 2007, which requires a
Certificate of Authorisation for operating as a payment system.
Regulatory Action
In a letter dated September 25, 2025, RBI directed Simpl to discontinue
all business operations related to payment, clearing, and settlement services.
The regulator emphasized that functioning without the necessary approval is illegal and warrants
intervention.
Link to ED Probe
The move comes after the Enforcement Directorate (ED) initiated proceedings
in July against Simpl and its founder-director Nithyanand Sharma under the
Foreign Exchange Management Act (FEMA), 1999.
According to ED, Simpl was involved in foreign exchange irregularities worth nearly
₹914 crore. Investigators allege that Simpl,
registered as One Sigma Technologies Pvt Ltd, raised foreign capital for
technology services but diverted the funds into financial services without prior regulatory approval,violating FDI rules.
Simpl’s Business Model
Co-founded by Nitya Sharma (former Goldman Sachs VP) and
Chaitra Chidanand (who exited in 2020), Simpl provides
Buy-Now-Pay-Later (BNPL) solutions across e-commerce, food delivery,
travel, and quick commerce platforms.
Customers can checkout instantly and repay within 15 days at no interest. The platform
partners with over 26,000 merchants including Zomato, BigBasket, Rapido,
and Box8. Over the years, Simpl raised nearly $83 million from investors
such as DIA Investments, Hard Yaka, FJ Labs, and Valar Ventures.
RBI’s Stand
Unlike other BNPL players who operate through NBFC licenses, Simpl positioned itself as a payments utility, similar to a traditional ledger system. However, the RBI has stated
that Simpl’s activities — involving payments, clearing, and settlement —
clearly fall under the scope of the PSS Act, making prior authorisation mandatory.
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