On April 12, 2025, a significant outage of the Unified Payments Interface (UPI) disrupted digital payment services across India, impacting millions of users who rely on platforms like PhonePe, Google Pay, and Paytm. Reports of failed transactions and app malfunctions began surfacing in the early morning hours, peaking around 8 AM IST, causing widespread frustration and chaos for users and small businesses alike.
The outage was tracked by Downdetector, which highlighted a sharp increase in complaints throughout the day. By noon, over 1,200 reports had been filed, with many users expressing their grievances on social media. As per Downdetector, approximately 76% of users encountered issues with payments, while 23% faced difficulties in transferring funds.
This incident marks the second major disruption within a short span, as users had previously reported issues on April 2, 2025. The current outage was exacerbated by scheduled maintenance activities at major banks, including HDFC and Kotak Mahindra Bank. HDFC Bank had maintenance scheduled from 2:30 AM to 6:30 AM, while Kotak Mahindra Bank's maintenance window ran from 1:00 AM to 4:00 AM. However, the scale and timing of the outage suggest a possible technical glitch or overload within the broader UPI network infrastructure managed by the National Payments Corporation of India (NPCI).
“We are currently facing some technical issues. Our team is working on resolving them as soon as possible,” said a spokesperson from PhonePe, acknowledging the service interruptions. Many users took to social media to voice their frustrations, with one user tweeting, "UPI is down again today, all payments are failing. There should be a notice if this is a planned outage." Another user lamented, "Stuck here at this fuel station from past 20+ minutes because UPI server is down, I’m not carrying cash/card and I already fueled up my car." Such sentiments echo the reliance on digital payment systems in daily transactions, particularly during weekends when shopping activity is high.
As of 3 PM IST, services began to resume in phases, but intermittent issues persisted throughout the day. Users were advised to check bank alerts and consider alternative payment methods, such as credit or debit cards, until the systems were fully restored. The outage underscored the growing dependence on digital payment infrastructures in India, where cashless transactions have become increasingly common.
UPI, developed by NPCI and operating under the supervision of the Reserve Bank of India, facilitates instant money transfers between bank accounts via mobile applications without any charges. It has revolutionized the way transactions are conducted in India, allowing users to make payments for everything from grocery bills to larger fund transfers.
Despite the temporary nature of the outage, the impact on small businesses and everyday users was substantial. Many retailers who depend on digital payments expressed their anger over lost transactions, with some stating that the disruption could lead to a significant loss of sales.
In an earlier incident on March 26, 2025, UPI services faced a similar outage that lasted for several hours, attributed to technical glitches affecting the system. This highlights a concerning trend, as this latest incident is reportedly the sixth major UPI problem in the last year alone. Users and merchants alike are left waiting for clarity and reassurance from NPCI regarding the stability and reliability of the UPI network.
While the exact cause of the April 12 outage remains unclear, the incident has sparked discussions regarding the robustness of the digital payment infrastructure in India. With the country moving further into a cashless economy, ensuring the reliability and security of systems like UPI is more crucial than ever.
As the situation develops, users are encouraged to remain vigilant and prepared for potential disruptions in the future. Carrying cash or having alternative payment methods readily available can help mitigate the inconvenience caused by such outages. The reliance on UPI and digital payment systems continues to grow, making it imperative for service providers to enhance their infrastructure and ensure minimal disruption during peak usage times.
Stay tuned to Hindustan Herald for real-time updates on this developing story, as the situation evolves and more information becomes available.
