The Reserve Bank of India (RBI) has directed India-based Buy Now, Pay Later provider, Simpl, to immediately stop their payment operations for failure to secure a business authorisation under the country’s Payments and Settlement Systems (PSS) Act.
The order by the national regulator was sent on 25 September 2025, urging Simpl to immediately stop all business carrying, including its functions of payment, clearing, and settlement.
More information about the regulator’s decision
According to the central bank, Simpl has been functioning as a payment system operator, without securing the required authorisation certificate as per India’s laws. RBI’s decision comes after the Enforcement Directorate, under the Foreign Exchange Management Act (FEMA) initiated similar proceedings against Simpl and its founder-director, earlier in July 2025. The agency alleged that BNPL the startup was involved in foreign exchange irregularities amounting over USD 100 million (INR 914 crore).
Further investigation revealed that Simpl raised overseas capital to provide technology services but used the funds to allegedly funnel into financial services activities, which breached India’s foreign direct investment (FDI) regulations.
Unlike many other BNPL players that secure NBFC licences to meet regulation standards, the startup was known to position itself as a payments utility, even though no company operating in the payment system can do so without RBI’s prior authorisation.
What you need to know about Simpl
Launched in 2015, the BNPL startup offers payment instalment services to customers across ecommerce, food delivery, and quick commerce platforms. It offers users the possibility to checkout instantly and pay later, within a 15-day period with zero interest. According to the company, over 26,000 brands already joined Simpl, including Zomato, Zepto, Swiggy, and Birkenstock.
As of recently, Simpl amounted around USD 83 million in funding, attracting big investor names such as FJ Labs and Hard Yaka.
According to Research and Markets, the BNPL payment market in India is expected to reach USD 21.95 billion by the end of 2025. This particular payment segment experienced a robust growth between 2021-2024, with a CAGR exceeding 22%. As the market continues to mature, it is expected that BNPL will continue to grow at a CAGR of approximately 9.8% until 2030.
India has become an attractive BNPL market for both national and international brands, driven by the country’s growth of ecommerce and the demand for payment solutions tailored to the needs of Indian consumers.
