The Reserve Bank of India (RBI) has directed Bengaluru-based buy-now-pay-later (BNPL) company Simpl to stop all payment-related operations with immediate effect. The central bank cited the absence of the required authorisation under the Payment and Settlement Systems (PSS) Act, 2007.
According to an RBI letter dated September 25, 2025, Simpl has been functioning as a payment system operator without obtaining the mandatory Certificate of Authorisation. The company has been instructed to discontinue all business operations linked to payment, clearing, and settlement services.
The move comes after the Enforcement Directorate (ED) initiated proceedings against Simpl and its founder-director Nithyanand Sharma in July over alleged foreign exchange irregularities amounting to nearly ₹914 crore. Investigators say that funds raised abroad, supposedly for technology services, were diverted into financial services without regulator approval, violating India’s foreign direct investment rules.
Simpl, registered as One Sigma Technologies Pvt Ltd, was co-founded by Nitya Sharma, a former Goldman Sachs VP, and Chaitra Chidanand, who left in 2020. The company provides BNPL services allowing customers to pay after 15 days with no interest, and has partnerships with over 26,000 merchants including Zomato, BigBasket, Rapido, and Box8.
Over time, Simpl has raised about $83 million from investors such as DIA Investments, Hard Yaka, FJ Labs, and Valar Ventures. The RBI’s action has temporarily halted its core payment operations, affecting customers and partner merchants across multiple sectors.
