Many businesses have expressed that they will not accept Unified Payments Interface transactions exceeding ₹2,000 following upcoming changes to transaction fee structures.
For millions of motorists accustomed to pulling up to a fuel station, scanning a QR code, and driving away without ever opening their wallets, this developing standoff introduces a surprising friction point.

Can businesses refuse UPI payments?

UPI remains completely free for consumers, even with the upcoming introduction of the Merchant Discount Rate (MDR) starting October 15, 2026

What consumers need to know about UPI MDR?

India's UPI ecosystem is entering a new phase. Payments up to ₹2,000 will continue to remain free, protecting everyday users and small merchants. However, larger merchant transactions above ₹2,000 will attract a 0.4% Merchant Discount Rate (MDR), capped at ₹300. Consumers will not pay the charge directly, but the move is aimed at making India's digital payments infrastructure more financially sustainable as UPI volumes continue to surge. The debate now is who ultimately bears the cost of the world's largest real-time payments network.


Rahul Gandhi says PM Modi gave in to pressure from Trump, Congress calls new UPI fee 'Modi tax'

Who pays what? Full breakdown of new UPI merchant discount rates

Indian government puts out the Fineprint on UPI payments 

UPI's ₹2,000 divide: Free for millions, but who pays for India's digital revolution? 

India is pushing to take UPI beyond its domestic success by linking it with payment systems in other countries. PM Narendra Modi has called for greater cross-border integration, especially with nations that have large Indian communities and strong trade ties with India.

PM Modi's push to link UPI with foreign payment systems during BRICS summit

India's Unified Payments Interface, better known as UPI, has completed a decade of transforming the way people pay. What began as a domestic digital payments platform has grown into one of the world's largest real-time payment networks, processing billions of transactions every month. From roadside vendors and small businesses to international partnerships, UPI has reshaped India's financial ecosystem and become a global benchmark for digital payments. As UPI turns 10, this report explores its remarkable journey, the numbers behind its success and how India's fintech innovation is influencing payment systems worldwide.

10 Years Of UPI: From India’s Streets To The World 

India's free UPI payment ecosystem could soon witness its biggest policy shift since launch. The government has proposed amendments to the Payment and Settlement Systems Act that create a legal framework for introducing Merchant Discount Rate (MDR) on selected digital payment modes in the future.

While no immediate charges have been announced, reports suggest the government is considering a 0.25% to 0.4% merchant fee on UPI transactions above ₹2,000 made to businesses. Person-to-person transfers are expected to remain free, while larger merchants could bear the charges based on their annual turnover.

UPI Payments May No Longer Be Free? Government Eyes Merchant Charges

India's digital payments revolution continues to break records.

The Unified Payments Interface (UPI) recorded its highest-ever monthly transaction value in July, touching an impressive ₹29.88 lakh crore. The latest NPCI data highlights the rapid growth of digital payments, fintech innovation, and cashless transactions across the country.

What's driving this surge, and what does it mean for India's digital economy?

UPI clocks ₹29.88 lakh crore value

India's Unified Payments Interface (UPI) has added another international milestone, with Cambodia becoming the latest country to join the fast-growing digital payments network. What began as a domestic innovation has evolved into a global fintech success story, enabling seamless cross-border transactions and strengthening India's digital influence worldwide. With more than 30 countries reportedly exploring similar partnerships, UPI's expansion highlights how Indian technology is increasingly shaping the future of global payments.


Cambodia Joins UPI Map: 30+ Nations in Queue

Global tech firms Amazon and Meta are preparing to raise concerns about India’s digital payments market, where PhonePe and Google Pay continue to dominate. Executives from several platforms are expected to meet the National Payments Corporation of India (NPCI), which manages the Unified Payments Interface, one of the world’s largest instant payment systems.&nbsp;<h2>Why are companies raising concerns?</h2>The meeting comes as smaller players struggle to compete in a market largely controlled by two apps.According to NPCI data:PhonePe and Google Pay together handled around 80 per cent of UPI transactionsThe network processed 22.6 billion transactions in March aloneThis gap has raised concerns among companies like Amazon Pay, WhatsApp Pay, CRED and MobiKwik about limited growth opportunities in the current system.<h2>What Amazon, Meta and others want</h2>Companies attending the meeting are expected to push for changes in how the UPI ecosystem operates.Key concerns include:User onboarding practices by dominant appsUse of contact data for expanding user baseAccess to features like autopay and payment mandatesThey are also likely to request:Fair access to platform featuresIncentives for smaller playersRegulatory support to improve competitionThe goal is to create a more balanced system where newer or smaller apps can grow.<h2>Delay in market share cap adds to debate</h2>India had earlier proposed a rule to limit any single UPI app’s market share to 30%.However, this rule has been delayed until December 31, 2026, allowing dominant players to continue expanding.This delay has made it harder for smaller platforms to gain market share, as the gap continues to widen.Scale advantage of PhonePe and Google PayPhonePe has reported:Over 700 million registered usersAround 50 million merchantsIts services are available across more than 98% of India’s postal codes, showing its wide reach.Such scale makes it difficult for competitors to match user base and merchant networks.<h2>Regulatory challenge for NPCI</h2>The National Payments Corporation of India faces a complex task.It needs to:Maintain smooth services for millions of usersAddress concerns about market concentrationEnsure fair competition without disrupting the systemThe organisation operates under the supervision of the Reserve Bank of India.<h2>What happens next?</h2>It is not yet clear whether the meeting will lead to immediate changes.However, the discussions highlight a key issue in India’s digital economy how to balance innovation, scale and fair competition in a system used by hundreds of millions of people. As the UPI ecosystem continues to grow, decisions taken now could shape the future of digital payments in India.&nbsp;

Global tech firms Amazon and Meta are preparing to raise concerns about India’s digital payments market, where PhonePe and Google Pay continue to dominate. Executives from several platforms are expected to meet the National Payments Corporation of India (NPCI).

Global tech firms Amazon and Meta are preparing to raise concerns about India’s digital payments market, where PhonePe and Google Pay continue to dominate. Executives from several platforms are expected to meet the National Payments Corporation of India (NPCI), which manages the Unified Payments Interface, one of the world’s largest instant payment systems. Why are companies raising concerns? The meeting comes as smaller players struggle to compete in a market largely controlled by two apps. According to NPCI data: PhonePe and Google Pay together handled around 80 per cent of UPI transactions The network processed 22.6 billion transactions in March alone This gap has raised concerns among companies like Amazon Pay, WhatsApp Pay, CRED and MobiKwik about limited growth opportunities in the current system. What Amazon, Meta and others want Companies attending the meeting are expected to push for changes in how the UPI ecosystem operates. Key concerns include: User onboarding practices by dominant apps Use of contact data for expanding user base Access to features like autopay and payment mandates They are also likely to request: Fair access to platform features Incentives for smaller players Regulatory support to improve competition The goal is to create a more balanced system where newer or smaller apps can grow. Delay in market share cap adds to debate India had earlier proposed a rule to limit any single UPI app’s market share to 30%. However, this rule has been delayed until December 31, 2026, allowing dominant players to continue expanding. This delay has made it harder for smaller platforms to gain market share, as the gap continues to widen. Scale advantage of PhonePe and Google Pay PhonePe has reported: Over 700 million registered users Around 50 million merchants Its services are available across more than 98% of India’s postal codes, showing its wide reach. Such scale makes it difficult for competitors to match user base and merchant networks. Regulatory challenge for NPCI The National Payments Corporation of India faces a complex task. It needs to: Maintain smooth services for millions of users Address concerns about market concentration Ensure fair competition without disrupting the system The organisation operates under the supervision of the Reserve Bank of India. What happens next? It is not yet clear whether the meeting will lead to immediate changes. However, the discussions highlight a key issue in India’s digital economy how to balance innovation, scale and fair competition in a system used by hundreds of millions of people. As the UPI ecosystem continues to grow, decisions taken now could shape the future of digital payments in India.

Global tech firms Amazon and Meta are preparing to raise concerns about India’s digital payments market, where PhonePe and Google Pay continue to dominate. Executives from several platforms are expected to meet the National Payments Corporation of India (NPCI).

‘80% market share’: Why rivals are raising concerns over PhonePe, Google Pay

India’s latest UPI data points to a clear shift in how consumers spent in March. Discretionary expenses witnessed a noticeable slowdown.


UPI Data Shows Dip in Discretionary Spending 

The Reserve Bank of India is planning to introduce a delay for high-value UPI transactions, giving users a one-hour window to review or cancel payments. The move aims to curb rising digital fraud cases by adding an extra layer of security. With stricter checks and more user control, the proposal could significantly change how large digital payments are processed across India.


RBI Plans Delay & Extra Checks on High-Value UPI Payments to Curb Rising Digital Fraud

An Indian minister has introduced a new Tokenization Bill in Parliament aimed at strengthening digital payment security and protecting consumer data. If passed, the legislation will regulate how sensitive financial information like card details  is stored and processed, encouraging safer online transactions and reducing fraud. Lawmakers are debating key provisions as India moves toward more secure digital ecosystems.


Indian Minister Introduces New Tokenization Bill in Parliament 

India is in talks to integrate UPI with Alipay+, aiming to allow Indian travelers to make seamless cross-border payments at global merchants. The move could expand UPI’s reach and simplify international transactions for Indians abroad.


India Explores Linking UPI With Alipay+ to Enable Global Payments

UPI Smashes Records with 21.6 Billion Transactions in December 2025 - Elets BFSI.


How UPI rewired the way India pays in 2025 

 India’s real-time payments platform UPI scaled fresh highs in 2025, posting record transactions both in volume and value.


India's UPI Adoption Expands Beyond Metros in 2025

India’s Unified Payments Interface, or UPI, continues to earn global recognition. The International Monetary Fund (IMF) has officially listed India’s UPI as the world’s largest real-time payment system by transaction volume. This video breaks down what the IMF report highlights, why UPI is leading globally, and how India’s digital payments revolution is reshaping financial systems worldwide.


IMF Recognises India's UPI System as World's Largest 

India's unified payments interface, the UPI, gets global recognition.
The international monetary fund, or the IMF lists India's UPI as the world's largest real-time payment system by transaction volume.

India’s UPI Gets Global Recognition for Digital Payment Innovation

The Unified Payments Interface (UPI) continued its rapid rise in November 2025, crossing over 19 billion transactions worth Rs 24.58 lakh crore as of November 28, according to data released by the National Payments Corporation of India (NPCI).


UPI payments in India Register Steady Growth YoY in November 2025 

This Diwali, India’s Unified Payments Interface (UPI) hit a new milestone with record transactions worth Rs 1.02 lakh crore in a single day. October saw an average of 695 million daily UPI transactions, up 6% from September. Festive spending combined with lower GST rates boosted digital payments across e-commerce and retail, reflecting the growing adoption of cashless transactions nationwide.

Diwali Sparks Record Rs 1.02 Lakh Crore UPI Transactions | Digital Payments Soar

India is pioneering AI-driven digital commerce with the introduction of UPI payments within ChatGPT. In collaboration with the National Payments Corporation of India (NPCI), Razorpay, and OpenAI, this pilot program allows users to browse and purchase products—like groceries from BigBasket—directly within the ChatGPT interface, without switching apps.


ChatGPT Meets UPI: ChatGPT May Soon Handle Your UPI Payments

The National Payments Corporation of India (NPCI) has raised the UPI limit for Person-to-Merchant (P2M) transactions to ₹10 lakh per day for select verified categories, effective from September 15. This move aims to simplify high-value digital transactions for Indian users. The UPI limit for Person-to-Person (P2P) transfers remains unchanged at ₹1 lakh per day. Find out who qualifies for the new limit and how it impacts merchants and consumers alike.

UPI new rules: Transaction limit now ₹10 lakh | Big boost for business & payments

UPI Transaction Volume Hits a Record High | WION Business Watch

The transactions volume of India's homegrown fin tech unified payment interface or UPI, hit a new record in August. While UPI transactions value declined slightly, the number of banks live on UPI surged to a fresh high. That is according to data from national payments corporation of India or N.P.C.I.



UPI Transaction Volume Hits a Record High | WION

The primary change under this new reform will significantly reduce the time taken for payment completion, from 30 seconds earlier to around 15 seconds now.

The primary change under this new reform will significantly reduce the time taken for payment completion, from 30 seconds earlier to around 15 seconds now.

PhonePe, Google Pay, and Paytm transactions to become faster, NPCI rolls out key UPI upgrade

India’s artificial intelligence (AI) market is projected to grow more than triple in value to $17 billion (Rs. 1,45,384 crore) by 2027, according to a Boston Consulting Group (BCG) report titled 'India’s AI Leap: BCG Perspective on Emerging Challengers'. The report indicates that India is likely to become one of the fastest-growing AI economies globally.&nbsp;This growth is connected to the Indian enterprises shift from small-scale pilot projects to full-scale AI deployment across industries. The market expansion is also being driven by increased investment in enterprise technology, as well as a strong digital ecosystem in addition to a substantial base of skilled professionals.<h2>Strength of workforce</h2>India has over 600,000 AI professionals currently, with expectations for the numbers to reach 1.25 million by 2027. This represents 16 per cent of the global AI talent pool, hence placing India on the second place, next to the United States. The country’s strength in science, technology, engineering, and mathematics (STEM) education was cited as a key factor in this development.&nbsp;The report said, "India is no exception—businesses across sectors are rapidly embracing AI to solve local challenges, scale innovation, and drive competitive advantage. AI is significantly expanding the total addressable market (TAM) by 1.2 to 1.5 times across key Indian sectors, while delivering unmatched efficiencies and speed.".<h2>India's digital public infrastructure</h2>The report further notes that one of the significant foundations for AI adoption in India are provided by the country’s digital public infrastructure. These digital platforms including DigiLocker, Aadhaar, Unified Payments Interface (UPI), and the Open Network for Digital Commerce (ONDC) are enabling a scalable AI integration across various sectors.&nbsp;With more than 700 million internet users in India and widespread smartphone penetration, the country also generates large volumes of data. This data becomes essential for training and improving AI models. AI's impact is increasingly evident across sectors such as finance, healthcare, media, retail, and real estate.&nbsp;BCG's findings highlights the transition of AI in India, from an optional technology to a core business tool. AI is increasingly being adopted by companies to improve efficiency and remain competitive at a global level.

The report indicates that India is likely to become one of the fastest-growing AI economies globally.

India’s artificial intelligence (AI) market is projected to grow more than triple in value to $17 billion (Rs. 1,45,384 crore) by 2027, according to a Boston Consulting Group (BCG) report titled 'India’s AI Leap: BCG Perspective on Emerging Challengers'. The report indicates that India is likely to become one of the fastest-growing AI economies globally. This growth is connected to the Indian enterprises shift from small-scale pilot projects to full-scale AI deployment across industries. The market expansion is also being driven by increased investment in enterprise technology, as well as a strong digital ecosystem in addition to a substantial base of skilled professionals. Strength of workforce India has over 600,000 AI professionals currently, with expectations for the numbers to reach 1.25 million by 2027. This represents 16 per cent of the global AI talent pool, hence placing India on the second place, next to the United States. The country’s strength in science, technology, engineering, and mathematics (STEM) education was cited as a key factor in this development. The report said, "India is no exception—businesses across sectors are rapidly embracing AI to solve local challenges, scale innovation, and drive competitive advantage. AI is significantly expanding the total addressable market (TAM) by 1.2 to 1.5 times across key Indian sectors, while delivering unmatched efficiencies and speed.". India's digital public infrastructure The report further notes that one of the significant foundations for AI adoption in India are provided by the country’s digital public infrastructure. These digital platforms including DigiLocker, Aadhaar, Unified Payments Interface (UPI), and the Open Network for Digital Commerce (ONDC) are enabling a scalable AI integration across various sectors. With more than 700 million internet users in India and widespread smartphone penetration, the country also generates large volumes of data. This data becomes essential for training and improving AI models. AI's impact is increasingly evident across sectors such as finance, healthcare, media, retail, and real estate. BCG's findings highlights the transition of AI in India, from an optional technology to a core business tool. AI is increasingly being adopted by companies to improve efficiency and remain competitive at a global level.

The report indicates that India is likely to become one of the fastest-growing AI economies globally.

India’s digital push could drive its AI market to $17 billion by 2027: Report

India’s Union Finance Ministry on Wednesday refuted reports suggesting that a fee would be charged on Unified Payments Interface (UPI) transactions and termed them “completely false, baseless, and misleading”.&nbsp;“Speculation and claims that the merchant discount rate (MDR) will be charged on UPI transactions are completely false, baseless, and misleading,” the ministry said in a post on social media platform X.&nbsp;“Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens. The Government remains fully committed to promoting digital payments via UPI,” it added.&nbsp;<h2>What is MDR?</h2>&nbsp;Merchant Discount Rate (MDR) is a fee paid by merchants to banks for processing real-time digital transactions. Currently, UPI and RuPay debit card payments attract no MDR, a policy implemented through the National Payments Corporation of India (NPCI).&nbsp;This zero-MDR regime has been in effect since it was announced in the FY22 Budget to boost digital adoption. Previously, merchants paid a fee of under 1 per cent of the transaction amount. However, as UPI has become the dominant method for retail payments and RuPay is gaining traction, experts say a complete waiver on MDR may no longer be sustainable.&nbsp;<h2>Industry appeals for MDR reinstatement</h2>&nbsp;Industry stakeholders have also been questioning the viability of zero-MDR model and highlight the cost burden on banks and payment service providers.&nbsp;Earlier this year, the Payments Council of India, representing digital payment service providers, wrote to Prime Minister Narendra Modi, requesting the reintroduction of MDR.It recommended a 0.3 per cent MDR on UPI payments made to large merchants and proposed a nominal, fixed MDR on all RuPay debit card transactions.&nbsp;<h2>Govt continues support through incentives</h2>&nbsp;The Union Cabinet recently extended a ₹1,500 crore incentive scheme designed to compensate stakeholders for the cost of small-value UPI transactions, but fintech companies criticised the amount, arguing it is insufficient to support the surging volume of digital payments.&nbsp;According to the Reserve Bank of India’s annual report for FY25, digital payments have surged nationwide. UPI accounted for 185.8 billion transactions during the year—a 41.7 per cent increase from 131.1 billion in FY24.

This zero-MDR regime has been in effect since it was announced in the FY22 Budget by the Union government to boost digital adoption. Previously, merchants paid a fee of under 1 per cent of the transaction amount.

India’s Union Finance Ministry on Wednesday refuted reports suggesting that a fee would be charged on Unified Payments Interface (UPI) transactions and termed them “completely false, baseless, and misleading”. “Speculation and claims that the merchant discount rate (MDR) will be charged on UPI transactions are completely false, baseless, and misleading,” the ministry said in a post on social media platform X. “Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens. The Government remains fully committed to promoting digital payments via UPI,” it added. What is MDR? Merchant Discount Rate (MDR) is a fee paid by merchants to banks for processing real-time digital transactions. Currently, UPI and RuPay debit card payments attract no MDR, a policy implemented through the National Payments Corporation of India (NPCI). This zero-MDR regime has been in effect since it was announced in the FY22 Budget to boost digital adoption. Previously, merchants paid a fee of under 1 per cent of the transaction amount. However, as UPI has become the dominant method for retail payments and RuPay is gaining traction, experts say a complete waiver on MDR may no longer be sustainable. Industry appeals for MDR reinstatement Industry stakeholders have also been questioning the viability of zero-MDR model and highlight the cost burden on banks and payment service providers. Earlier this year, the Payments Council of India, representing digital payment service providers, wrote to Prime Minister Narendra Modi, requesting the reintroduction of MDR. It recommended a 0.3 per cent MDR on UPI payments made to large merchants and proposed a nominal, fixed MDR on all RuPay debit card transactions. Govt continues support through incentives The Union Cabinet recently extended a ₹1,500 crore incentive scheme designed to compensate stakeholders for the cost of small-value UPI transactions, but fintech companies criticised the amount, arguing it is insufficient to support the surging volume of digital payments. According to the Reserve Bank of India’s annual report for FY25, digital payments have surged nationwide. UPI accounted for 185.8 billion transactions during the year—a 41.7 per cent increase from 131.1 billion in FY24.

This zero-MDR regime has been in effect since it was announced in the FY22 Budget by the Union government to boost digital adoption. Previously, merchants paid a fee of under 1 per cent of the transaction amount.

‘Baseless, false’: Finance Ministry says no plan for any fee on UPI transactions

India's popular unified payments interface (UPI) is emerging as a global powerhouse. UPI transactions have seen a significant surge since their inception during COVID. In this article, we dive into the numbers and decode how UPI is now poised to overtake Visa in daily transaction volume.India's popular and home-grown cutting-edge fintech, UPI, is fast becoming the top choice for digital retail payments. In terms of the value of transactions, UPI is already way ahead.<h2>India's UPI surge nears a new milestone</h2>The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value. In terms of daily transaction volume, UPI is set to surpass that of global payments behemoth Visa soon. That will make UPI the world's largest retail interbank payment settlement network. In terms of volumes, Visa does not share daily transaction details. Still, looking at the figures available, UPI is fast closing in on transaction volumes through card networks. On June 1 and 2, UPI reported 644 million and 650 million transactions, respectively. That is just above the visa's FY-24 global daily average of 639 million. The number of daily transactions reported by UPI increased from 630 million in early May to about 650 million in just the first two days of June. UPI experiences a 5-7 per cent month-on-month rise and a 40 per cent yearly growth. That is driven by an increase in internet penetration and more individuals embracing digital payments. Transactions processed by Visa are increasing at a rate of 10 per cent each year. The current upward trend suggests that, over the next two or three months, UPI will have more daily average transactions than Visa. The new milestone will make it even more remarkable because of the difference in the payment settlement methodology of card networks and the UPI. UPI's payment settlement approach is real-time, while card networks like Visa and Mastercard use deferred settlement methodology. UPI facilitates almost 85 per cent of all digital payments in the country. Not surprisingly, an RBI report showed India now accounts for nearly half of all real-time payment transactions.

The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value.

India's popular unified payments interface (UPI) is emerging as a global powerhouse. UPI transactions have seen a significant surge since their inception during COVID. In this article, we dive into the numbers and decode how UPI is now poised to overtake Visa in daily transaction volume. India's popular and home-grown cutting-edge fintech, UPI, is fast becoming the top choice for digital retail payments. In terms of the value of transactions, UPI is already way ahead. India's UPI surge nears a new milestone The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value. In terms of daily transaction volume, UPI is set to surpass that of global payments behemoth Visa soon. That will make UPI the world's largest retail interbank payment settlement network. In terms of volumes, Visa does not share daily transaction details. Still, looking at the figures available, UPI is fast closing in on transaction volumes through card networks. On June 1 and 2, UPI reported 644 million and 650 million transactions, respectively. That is just above the visa's FY-24 global daily average of 639 million. The number of daily transactions reported by UPI increased from 630 million in early May to about 650 million in just the first two days of June. UPI experiences a 5-7 per cent month-on-month rise and a 40 per cent yearly growth. That is driven by an increase in internet penetration and more individuals embracing digital payments. Transactions processed by Visa are increasing at a rate of 10 per cent each year. The current upward trend suggests that, over the next two or three months, UPI will have more daily average transactions than Visa. The new milestone will make it even more remarkable because of the difference in the payment settlement methodology of card networks and the UPI. UPI's payment settlement approach is real-time, while card networks like Visa and Mastercard use deferred settlement methodology. UPI facilitates almost 85 per cent of all digital payments in the country. Not surprisingly, an RBI report showed India now accounts for nearly half of all real-time payment transactions.

The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value.

World-beater in the making: India's UPI

India’s popular digital payment platform UPI faced yet another disruption, marking the third technical snag in just a few weeks. Over 1,100 complaints were logged on Downdetector, with users reporting failed transactions and delays. NPCI has acknowledged the issue and urged users to be patient as teams work on restoring normalcy.

UPI services disrupted again across India, users report massive outage

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.&nbsp; 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, &ldquo;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.&rdquo;
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-m9e2q579-evsvjlgr-nbkt5npd">
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.
&mdash; NPCI (@NPCI_NPCI) <a href="https://twitter.com/NPCI_NPCI/status/1910961688016474590?ref_src=twsrc%5Etfw">April 12, 2025</a></blockquote>
&nbsp;
<h2>Third outage in 3 weeks</h2>
This was the third time India&rsquo;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. &ldquo;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,&rdquo; 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 &ldquo;partial&rdquo; about this. The failure is complete and across the board!"
Another said, &ldquo;Being a retailer, when UPI payments are down, it becomes very difficult. Lost quite a lot of weekend business due to this.&rdquo;
Also read:&nbsp;<a href="https://www.wionews.com/world/kashmiri-pandits-demand-a-bill-like-waqf-for-preserving-temple-and-associated-properties-in-jammu-and-kashmir-8951832" target="_blank" rel="noopener">Kashmiri Pandits demand a bill like Waqf for preserving temple and associated properties in Jammu and Kashmir</a>

India News: 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.

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. Also read | Iran seeks 'fair and honourable' deal as Trump says Tehran 'can't have a nuclear weapon' 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. — NPCI (@NPCI_NPCI) April 12, 2025 Third outage in 3 weeks 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. Also Read | J&K: Three terrorists killed in Kishtwar encounter, operation continues 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.” Also read: Kashmiri Pandits demand a bill like Waqf for preserving temple and associated properties in Jammu and Kashmir

UPI services hit by third outage in three weeks, thousands of users report difficulties

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