The Reserve Bank of India has ordered One Sigma Technologies Pvt Ltd, which operates the fintech platform Simpl, to immediately stop its payment system operations, citing violations of national payment laws.

In a letter dated September 25, 2025, reviewed by The Head and Tale, the central bank said, “It was found through investigations that Simpl is operating a payment system involving payment, clearing and settlement functions without a Certificate of Authorisation issued by the Reserve Bank in terms of Section 7 of the PSS Act, 2007.”

This action constitutes a violation of the Payment and Settlement Systems (PSS) Act of 2007, the RBI note said.

The letter specifies that under Section 4 of the Act, no entity shall commence or operate a payment system without RBI authorisation. The central bank determined Simpl's activities were in breach of this key regulation.

In its order, the RBI has instructed Simpl to "immediately stop the business of payment system".

The company was also directed to settle any outstanding financial liabilities with its customers and partners, with the letter stating the entity was "advised to settle the liabilities with both users and merchants, if any, to the duly verified bank accounts of such users, merchants.”

By sending the notice to all payment aggregators, the RBI has also put the broader financial ecosystem on notice. The letter advises firms to "undertake necessary actions to comply with the directions of the Reserve Bank," effectively instructing the industry to cease processing transactions related to Simpl's unauthorised system.

This move by the RBI represents a significant regulatory action within India's rapidly growing fintech sector. 

In July, the company was under the scrutiny of the Enforcement Directorate (ED), which filed a complaint under the Foreign Exchange Management Act (FEMA) against Simpl, and its director Nithya Nand Sharma for contraventions to the tune of Rs 913.76 crore.