HIGHLIGHTS

Over 64% of complaints pertained to fund transfers, while 28% reported issues with payment failures.

NPCI has yet to officially recognize the issue, but indications suggest a technical glitch.

SBI, along with several other banks, also faced service outages yesterday due to financial year-end system updates.

The recent disruptions in the Unified Payments Interface (UPI) service have left numerous Indian users grappling with issues while trying to conduct online transactions through various platforms, including Paytm, Google Play, and others. This incident marks the second significant outage within a short period of just two weeks. Previously, a similar series of reports indicated problems with online payments, highlighting the growing concerns among users. According to Downdetector, the peak of the outage was noted in the evening hours, which considerably hindered customers’ ability to make payments, transfer funds, or effectively use the applications.

Specific data revealed that over 64% of complaints centered around difficulties in fund transfers, while 28% were linked to payment failures. The remaining 8% of complaints involved issues solely related to app functionalities. Notably, the State Bank of India (SBI), which confronted an analogous outage the previous day, continues to be affected by these technical disturbances.

At the time of this report, the National Payments Corporation of India (NPCI)—the body responsible for overseeing the UPI system—had not officially addressed the malfunction affecting users. The exact cause of the outage remains unclear. However, it seems to stem from a technical glitch, and some users have indicated that the amounts deducted from their accounts are being processed for refunds.

Interestingly, SBI not only faced interruptions linked to the UPI system but also experienced issues as the fiscal year drew to a close on April 1. The NPCI had made a statement acknowledging intermittent transaction declines but clarified that these issues were related to specific banks. They assured the community that the fundamental UPI system continued to operate smoothly despite the disruptions. The NPCI said, “Today due to financial year closing, some of the banks are facing intermittent transaction declines. UPI system is working fine, and we are working with the concerned banks for necessary redressal,” in a communication posted on X (formerly Twitter).

At the same time, SBI made public its temporary service outages due to annual financial closing processes, with Downdetector reporting a significant rise in outage reports concerning SBI mobile banking and fund transfers. It’s worth mentioning that a number of other banks are also grappling with similar disruptions, suggesting that the challenges may be more widespread than initially perceived.

This operational turmoil has raised concerns among users heavily reliant on digital transactions for their day-to-day activities. Given that UPI is an integral part of the digital payment ecosystem in India, its downtime significantly impacts businesses and consumers alike. The reliance on seamless digital transactions underscores the need for robust infrastructure and quick resolutions when issues arise.

As a response to the ongoing situation, banks and the NPCI are expected to collaborate closely to rectify the glitches and restore full service functionality. Users impacted by the outages are encouraged to keep records of their transactions for any future claims or to seek assistance from their respective banks regarding any discrepancies arising from failed transactions.

As the digital landscape continues to evolve in India, stakeholders must remain vigilant and proactive in addressing challenges such as these to ensure a reliable payment system is maintained for users across platforms. The expectation is that resolutions will come swiftly, with improved communication and transparency regarding ongoing issues being essential elements in restoring user confidence.