Summary:
- RBI cites violation of Payment & Settlement Systems Act, 2007
- Simpl operated without mandatory Certificate of Authorisation
- Disruption likely for users and partners like Zomato, BigBasket, Rapido
RBI Cracks Down On Simpl’s Operations
In a decisive move, the Reserve Bank of India (RBI) has directed Bengaluru-based fintech Simpl to immediately suspend all payment system activities, citing breaches of the Payment and Settlement Systems (PSS) Act, 2007.
The central bank’s letter, dated September 25 and reviewed by Economic Times, stated: “The entity is directed to immediately stop the business of payment systems carried out by involving functions of payment, clearing, and settlement.”
This action makes Simpl one of the latest fintechs to face direct regulatory intervention amid the RBI’s tightening grip on digital lending and payments.
The Breach: No Authorisation To Run Payments
RBI investigations revealed that Simpl was running payment operations without securing the mandatory Certificate of Authorisation (CoA) — a legal requirement under the PSS Act.
Without this certification, any entity facilitating payments, clearing, or settlements is considered non-compliant. For Simpl, which built its reputation as a Buy-Now-Pay-Later (BNPL) leader, the lack of authorisation has triggered a complete halt of its payment systems.
Industry insiders say this development highlights the compliance gap that several fintechs face as they scale rapidly, often outpacing regulatory alignment.
What It Means For Partners, Users & The BNPL Sector
Simpl has become a go-to BNPL option across leading e-commerce, food delivery, and quick-commerce platforms. Its partner list includes Zomato, BigBasket, Rapido, and Box8, making the RBI’s order a potential disruption for both merchants and customers.
For users, the immediate concern is whether Simpl-powered checkouts and pay-later transactions will function smoothly in the coming days. For the broader BNPL sector, the move signals that the RBI will scrutinise compliance at every level — from digital lenders to payment facilitators.
