BNPL StipT

The Indian Reserve Bank (RBI) directed the start of the BNPL (BNPL), which is based in its headquarters, to stop all operations related to payment immediately, noting that the non-license under the 2007 payment and settlement systems law.

According to a letter dated September 25, 2025, the central bank said that Simple was working as an operator of the payment system without mandatory permission. It takes the company to stop activities that involve payment, clearing and settlement functions with an immediate effect.

RBI emphasized that such operations without approval violate the provisions of the PSS law. The law enables the central bank to regulate and supervise payment systems in India, where the 4th section prohibits any entity to operate such systems without prior permission.

The development was initially reported by economic times.

The organizational procedure against simplicity comes a few months after the launch of the EDA (ED) investigation. In July, the agency filed a case according to the Foreign Drainage Management Law (FEMA), 1999, against SIMIL and its founder, NIIYA Sharma, due to the alleged Forex violations of 913.75 rupees.

According to ED, Simple, which was integrated as Sigma Technologies PVT LTD, received foreign investment for technology services. However, investigators claim that the startup has turned these funds to financial services without obtaining the necessary permits, thus violating foreign direct investment regulations in India.

Founded in 2015 by Sharma, former Vice President of Goldman Sachs, Chaitra Chidanand, who put herself as an aid to friction payments instead of organized lender. The company’s model allowed customers to immediately perform purchases and settle payments later – usually within 15 days at zero interest. Its merchant network extends with more than 26,000 partners, including Zomato, Bigbasket, Rapido and Box8.

Over the years, Simple has attracted great support for investment capital, raising about $ 83 million of global investors such as Dia, Hard Yaka, FJ Labs and Valar Ventures. Despite the rapid growth, the company avoided following the license of a non -banking financial company (NBFC), unlike many BNPL competitors who are associated with organized institutions to work compatible. Its founders have often been marred by the Simpl approach in a modern version of the traditional khata (LEDGER) system.

However, the organizers are not convinced of this site. The RBI order notes that the SIMPL – which highlight the payment, the limited, and the settlement between consumers and merchants – falls both within the scope of activities that require the central bank’s license.

Under the PSS law, RBI can issue trends, impose restrictions or cancel permissions if it turns out that the system provider is incompatible. The Central Bank’s guidance signals have increased the checkchs working in the regulatory gray areas.

For simplicity, it threatens the dual challenges of the RBI suspension and the continuous ED achievement to raise its business model, which raised questions about the future of unlicensed BNPL players in the ecosystem of advanced digital digital payments in India.