New Delhi, September 26, 2025 — The Reserve Bank of India (RBI) has directed Bengaluru-based buy-now-pay-later (BNPL) startup Simpl to immediately suspend all its payment operations, citing the company’s failure to secure the necessary authorization under the Payments and Settlement Systems (PSS) Act, 2007.
The order, communicated in a letter dated September 25, 2025, instructs Simpl to cease all activities related to payment, clearing, and settlement. According to the central bank, Simpl has been operating as a payment system operator without the required Certificate of Authorization, a move that constitutes a clear violation of the PSS Act.
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The RBI’s directive follows an investigation by the Enforcement Directorate (ED), which in July initiated proceedings against Simpl and its founder-director, Nithyanand Sharma, under the Foreign Exchange Management Act (FEMA), 1999. The ED alleges that the company engaged in foreign exchange irregularities amounting to nearly ₹914 crore. Simpl, officially registered as One Sigma Technologies Pvt Ltd, reportedly raised overseas capital under the pretext of providing technology services, but instead funneled the funds into financial services activities, in breach of India’s foreign direct investment regulations.
Simpl, a fintech startup, offers BNPL services across e-commerce, food delivery, and quick commerce platforms. Its service allows consumers to check out instantly and pay later, typically within a 15-day period with zero interest. Among its merchant clients are prominent names such as Zomato, BigBasket, Rapido, and Box8, and the company claims to partner with over 26,000 merchants.
Founded by Nitya Sharma, a former Goldman Sachs vice president, and Chaitra Chidanand (who exited in 2020 to co-found another fintech venture), Simpl has raised around $83 million from investors including DIA Investments, Hard Yaka, FJ Labs, and Valar Ventures. Unlike many BNPL providers that operate through regulated financial institutions or hold NBFC licenses, Simpl positioned itself as a payments utility, likening its model to a “khata” or traditional ledger system.
Under Section 4 of the PSS Act, no entity may commence or operate a payment system without RBI authorization. The Act also empowers the regulator to revoke approvals or issue directives if a system provider violates its provisions. The RBI’s action underscores the central bank’s mandate to enforce regulatory compliance in India’s rapidly expanding digital payments ecosystem.
Attempts to reach Nitya Sharma for comment were unsuccessful at the time of publication. The story will be updated if a response is received.
