The Reserve Bank of India (RBI) has directed Bengaluru-based buy-now-pay-later (BNPL) startup Simpl to immediately stop all payment-related operations, citing lack of authorisation under the Payment and Settlement Systems (PSS) Act, 2007.

According to a letter dated September 25, 2025, the central bank said Simpl was operating as a payment system operator without the mandatory Certificate of Authorisation. The order requires the company to cease activities involving payment, clearing, and settlement functions with immediate effect. Advertisement

The RBI stressed that such operations without approval violate provisions of the PSS Act. The law empowers the central bank to regulate and supervise payment systems in India, with Section 4 explicitly prohibiting any entity from running such sy

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