RBI orders Simpl to stop payments: What is BNPL service
The Reserve Bank of India (RBI) has ordered Bengaluru-based buy-now-pay-later firm Simpl to immediately cease its payments operations.
The RBI stated that Simpl was operating a payment system without the required authorization under Indian law.
Why it matters
This is part of the RBI's bigger push to keep digital lending safe and fair as more people use these services.
Even though Simpl worked with over 26,000 merchants, it didn't have proper approval—a big deal for any fintech.
Plus, the Enforcement Directorate is investigating Simpl for allegedly raising ₹913 crore in foreign funds by claiming it was an IT company while actually running financial services without government clearance.
If you use BNPL apps or follow fintech trends, this crackdown shows how important it is for startups to play by the rules.