UPI Down Again? Digital Payments Body Working To Resolve Issue’

Digital payments in India took another major hit on Saturday morning as UPI services went down yet again — for the third time in just a month. The outage left thousands of users unable to send or receive money through popular apps like Google Pay, PhonePe, and Paytm, triggering frustration at shops, restaurants, and other daily transactions.

The problem began around 11:26 a.m., according to the outage-tracking website DownDetector, and peaked shortly before noon with more than 2,000 complaints pouring in from across the country. It’s another reminder of how deeply Indians now rely on UPI (Unified Payments Interface) — and how a single glitch can bring the system to a standstill.

“Intermittent Technical Issues,” Says NPCI

The National Payments Corporation of India (NPCI), which runs the UPI network, acknowledged the outage in a brief statement on X (formerly Twitter). They said they were aware of the issue and working to resolve it.

“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,” the NPCI said.

The outage affected multiple banks and platforms. Some of the major names that saw disruptions include HDFC Bank, State Bank of India, Bank of Baroda, and Kotak Mahindra Bank. Payments and fund transfers were the most reported problems, according to DownDetector data.

Users Left Hanging at Counters, Cashiers Frustrated

As the issue spread, users across India found themselves stranded at payment counters, unable to complete even the smallest purchases. In grocery stores, petrol pumps, and restaurants, digital payments suddenly stopped working — and with UPI making up the bulk of India’s payment activity, there was little room for backup.

Even small businesses that depend entirely on UPI had no choice but to turn away customers or ask for cash, which many people no longer carry regularly.

Growing Pressure on UPI Infrastructure

This is the third major UPI outage in recent weeks, adding pressure on the NPCI to upgrade its systems and prevent frequent failures.

• On March 26, users across the country faced difficulties using UPI apps for about 2 to 3 hours. That outage was also blamed on technical glitches.

• A few days later, on April 2, hundreds of users again reported problems, mostly with fund transfers and payment failures.

At the time, the NPCI said those disruptions were due to intermittent issues in the backend systems. Although they assured users the service was restored, this latest incident suggests the problems aren’t fully fixed yet.

QR Code Rules Changing for Global Transactions

While the system is facing technical stress, the NPCI also made a key change recently for international payments. In a notice issued on April 8, the agency said that when making UPI payments outside India, users will no longer be able to scan QR codes to pay.

The goal is to ensure that the app being used can correctly identify the payer in foreign transactions. However, the NPCI clarified that this change does not affect QR code payments made within India. Domestic UPI transactions using QR codes remain untouched.

Record-Breaking Growth… but Slowing

India’s shift to digital payments has been nothing short of revolutionary. According to the Reserve Bank of India, UPI accounted for 83% of all payment transactions by volume at the end of 2024 — up from just 34% in 2019.

In contrast, older methods like NEFT, IMPS, credit cards, and RTGS have seen their combined share drop from 66% to just 17% during the same period. However, as reported by the Economic Times, UPI’s once-explosive growth is now slowing, mostly because the user base has already expanded so widely.

Still, the dependence on UPI is massive, and every outage brings a clear message: when the system breaks, so does a large chunk of India’s financial activity.

What’s Causing the Outages?

So far, the NPCI hasn’t offered a detailed explanation for what’s going wrong. Some tech experts suggest it could be due to:

• Server overloads, especially on weekends when transactions spike

• Maintenance activities that may not be communicated in advance

• Or even potential cybersecurity concerns — although there’s been no confirmation on that front

Whatever the reason, Saturday’s incident shows there’s an urgent need for stronger infrastructure, better real-time communication, and a foolproof backup system — especially when the entire country depends on UPI to function smoothly.