Several media have reported that UPI services have faced repeated outages recently. In April 2025 alone, there have been at least three significant ones in a short span of time – from March 26 to the recent events on April 12-13. These disruptions have affected major
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payment apps like Google Pay, PhonePe, Paytm and banking apps associated with institutions like HDFC Bank, State Bank of India, Kotak Mahindra Bank and others. People reported that they are unable to complete transactions, with frustration growing on social media platforms as activities – from paying bills at hospitals to making small purchases at petrol pumps and shops – have been disrupted.
Technical Glitches and High Transaction Volumes
System overload: Several reports suggest that the disruptions are due to the UPI system, which has seen record billions of transactions and record monetary values in recent months – facing heavy pressure during times of peak usage (for example, due to high consumer activity during major events such as IPL matches and the financial year-end surge).
Intermittent technical glitches: The National Payments Corporation of India (NPCI), which operates the UPI system, has acknowledged “intermittent technical glitches” that have partially led to a drop in transactions. In an official statement, NPCI said it is actively monitoring the situation and working on a solution.
Fraud detection mechanisms: Some industry experts have raised the possibility that complex fraud detection algorithms – employed by both NPCI and partner banks – may flag transactions as suspicious during periods of unusual activity. These false flags could inadvertently trigger service degradation and contribute to outages
Additional Factors
Single-point failure concerns: It has been pointed out that UPI’s operational infrastructure is centrally managed by NPCI, creating concentration risks. This can make the system more vulnerable to outages when single-point management and technical challenges are encountered
There are indications that some disruptions coincided with planned adjustments or maintenance – particularly around the end of the financial year – although these do not fully account for the frequency of disruptions
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Inconvenience to Consumers and Merchants
Many have taken to social media to express their displeasure. The incidents include delays at fuel stations and small businesses having to manually enter payments and details to settle pending transactions.
For small and medium businesses, this disruption is particularly disruptive, as it disrupts daily cashless transactions and can lead to loss of revenue.
Concerns: The repeated failures raise bigger questions about the resilience of India’s digital payments infrastructure, which has been at the forefront of moving the country towards a cashless economy.
Ongoing Monitoring and Future Improvements
In response to the disruptions, NPCI has issued statements assuring the public that measures are being taken to restore and stabilise the service as soon as possible.
The frequent nature of these outages has fueled discussions among industry experts and policymakers about the need for a more robust, scalable digital payments infrastructure. Some suggest that the introduction of technologies such as retail central bank digital currencies (CBDCs) or robust inter-bank settlement processes could help mitigate these vulnerabilities
Along with operational challenges, regulatory bodies, including the Reserve Bank of India (RBI), have been proactive in revising transaction limits and exploring policy frameworks that can make digital payments more secure.
Conclusion
The recent spate of UPI outages highlights the strengths and weaknesses of India’s digital payments revolution. While UPI continues to record-breaking transactions, the system’s frequent technical glitches highlight scalability challenges that require immediate attention. As NPCI and relevant stakeholders work to resolve these issues, people and merchants alike are urged to maintain backup payment methods during periods of instability
