On Saturday, April 12, 2025, a major outage in the Unified Payments Interface (UPI) left many users across India unable to complete online payments, marking the third significant disruption in just 30 days. The National Payments Corporation of India (NPCI), which oversees UPI operations, reported that the issue was due to intermittent technical difficulties affecting multiple payment applications.
Users of popular UPI apps such as PhonePe, Paytm, Google Pay, and Cred faced widespread inconveniences as they attempted to make transactions. The outage began at approximately 11:50 AM, with complaints peaking around 1:00 PM when Downdetector, a website that tracks internet service issues, recorded over 2,300 reports of failures. At that point, around 81% of users reported issues related to payment attempts, while 17% struggled with fund transfers and 2% had trouble completing purchases.
NPCI acknowledged the problem on X (formerly Twitter), stating, "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." This statement highlighted the ongoing nature of the issues, which have been particularly frustrating for users relying on UPI for everyday transactions like shopping and bill payments.
The impact of the outage was felt across a broad range of financial institutions, including major banks like HDFC Bank, State Bank of India, Bank of Baroda, and Kotak Mahindra Bank. Many users reported receiving error messages indicating that the recipient's bank network was down, preventing them from completing transactions.
This is not the first time UPI services have faced such disruptions. Just last month, on March 26, 2025, users experienced a similar outage that lasted for several hours. At that time, the NPCI also confirmed intermittent technical issues, which were resolved within a few hours. Additionally, there was another brief disruption on April 2, 2025, following procedural issues related to the end of the financial year.
The recent outages come on the heels of NPCI announcing new guidelines on April 8 for international UPI transactions, which restrict the use of QR codes for cross-border payments in an effort to enhance payer identification. While these changes are aimed at improving security, they also underline the evolving landscape of the UPI ecosystem as it adapts to global digital payment trends.
UPI, developed by the NPCI under the guidance of the Reserve Bank of India, has become a crucial component of India's digital payment infrastructure. It allows for instant money transfers between bank accounts using mobile apps, facilitating seamless transactions without the need for users to disclose their bank account information to merchants. UPI is widely celebrated for its convenience, particularly for small purchases at local stores, due to its no-fee structure and lack of minimum transaction amounts.
According to a report by digital payments fintech Phi Commerce, UPI is responsible for a staggering 65% of total digital transactions in India, reflecting its transformative impact on the payment landscape. The same report noted that while UPI dominates small and mid-value transactions, credit cards and EMIs (equated monthly installments) are increasingly being used for larger purchases, particularly in sectors like education and healthcare.
Despite the current challenges, UPI has reached record transaction values, with ₹24.77 lakh crore processed in March 2025, marking a 12.7% increase from the previous month. This growth indicates a strong reliance on digital payments among consumers, especially during festive shopping seasons and significant life events such as school admissions.
As the NPCI works to resolve the ongoing issues, users are left grappling with the uncertainty of when they will be able to rely on UPI for their everyday transactions once again. The situation underscores the critical role that UPI plays in the daily lives of millions of Indians, who have increasingly come to depend on this digital payment system for convenience and efficiency.
In conclusion, the recent outages serve as a reminder of the vulnerabilities within even the most advanced digital payment systems. As UPI continues to evolve and adapt to the demands of a growing digital economy, stakeholders will need to prioritize infrastructure stability to ensure that users can trust and rely on these essential services.
