
The Unified Payments Interface (UPI) users across India faced inconvenience and were unable to complete their payments and fund transfers since Saturday morning, after the services were disrupted due to a technical snag for the third time in three weeks.
UPI, an instant real-time payment system developed by NPCI to facilitate interbank transactions through mobile phones, has become extremely popular, and the disruption of its services left thousands of users in a bother.
Users of digital payment apps like Google Pay, PhonePe, and Paytm were unable to complete their transactions.
DownDetector, a platform that monitors outages, reported as many as 2,147 complaints by 12.56 pm, with nearly 80% of users saying they experienced issues.
The disruption also impacted a broad range of financial institutions and major banks like HDFC Bank, State Bank of India, Bank of Baroda, and Kotak Mahindra Bank.
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The National Payments Corporation of India (NPCI) confirmed the glitch and posted on X, “NPCI is currently facing intermittent technical issues, leading to partial UPI transaction declines. We are working to resolve the issue, and will keep you updated.”
NPCI is currently facing intermittent technical issues, leading to partial UPI transaction declines. We are working to resolve the issue, and will keep you updated.
We regret the inconvenience caused.
This was the third time India’s most widely used digital payment system was hit in three weeks, after March 26 and April 2, disrupting transactions and frustrating users.
On March 26, digital transactions were hit due to a widespread UPI outage, with a large number of users reporting problems in the instant payment interface.
“NPCI had faced intermittent technical issues owing to which UPI had partial decline. The same has been addressed now and the system has stabilised. Regret the inconvenience,” the regulator had said in an X post.
On April 2 also, payments via UPI were affected.
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UPI has become a transformational product in digital payments and continues to break monthly transaction records but the pace of growth is slowing as the user base has widened.
According to the Reserve Bank of India (RBI), UPI accounted for 83% of total payment volumes by the end of 2024, up from 34% in 2019, while the share of other payment modes like RTGS, NEFT, IMPS, credit cards and debit cards dropped from 66% to 17%.
Meanwhile, earlier in the week, the NPCI had announced a policy update for international UPI payments. Effective April 8, the use of QR codes for transactions outside India has been restricted to enhance payer identification. The domestic QR code payments remain unaffected.
UPI users vented their feelings on social media, as one said, "Nothing “partial” about this. The failure is complete and across the board!"
Another said, “Being a retailer, when UPI payments are down, it becomes very difficult. Lost quite a lot of weekend business due to this.”