India, Sept. 25 -- The Reserve Bank of India (RBI) has reportedly asked Bengaluru-based fintech startup Simpl to immediately stop all payment operations. The company confirmed the development to Inc42 and said it was working on its next move.

In a September 25 letter, the regulator said that the company was running a payments system involving "payment, clearing, and settlement" without holding the required Certificate of Authorisation under the Payment and Settlement Systems (PSS) Act, 2007, the Economic Times reported.

"We received a notice saying that our business falls under the category of a payment system and therefore we cannot operate without a licence. The directive was to stop operations immediately since we don't have one. The...