• RBI directs Simpl to stop payment operations immediately due to lack of authorisation
• Simpl faces regulatory probes, including Enforcement Directorate’s investigation on forex violations
• The order challenges the business model of unlicensed BNPL firms in India

The Reserve Bank of India (RBI) has ordered Bengaluru based buy-now-pay-later (BNPL) startup Simpl to stop all payment related operations immediately. The central bank found that Simpl was operating as a payment system operator without the mandatory Certificate of Authorisation, a legal requirement under the Payment and Settlement Systems (PSS) Act, 2007.

e RBI instructed Simpl to cease activities involving payment, clearing, and settlement functions with immediate effect. The central bank emphasized that running such systems without prior approval violates the PSS Act and is subject to regulatory action.

This move comes shortly after the Enforcement Directorate (ED) launched a probe into Simpl for alleged foreign exchange violations worth Rs 913.75 crore. The ED claims that Simpl, incorporated as One Sigma Technologies Pvt Ltd, diverted foreign investment meant for technology services into financial services without proper approvals, breaching foreign direct investment (FDI) rules.

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Founded in 2015, Simpl offered a seamless payment model allowing customers to buy now and pay later without interest, partnering with over 26,000 merchants like Zomato and BigBasket. The startup raised about $83 million from global investors but avoided obtaining an NBFC license, unlike many BNPL competitors.

The RBI’s order signals increased regulatory scrutiny of fintechs operating without clear licenses. Simpl’s business now faces uncertainty as it deals with both RBI’s suspension and the ED’s investigation, raising broader questions about the future of unregulated BNPL firms in India’s digital payments space.