On April 1, 2025, the State Bank of India (SBI) faced significant disruptions in its online banking, UPI, and mobile services, leaving many customers frustrated and unable to complete transactions. The issues began early in the morning, with reports of failures in mobile banking and fund transfers peaking around 11:45 AM, according to Downdetector, which tracks website performance.
Customers reported that they were unable to send money via UPI, leading to widespread complaints on social media platforms. Users took to X (formerly Twitter), using hashtags like #UPInotworking and #SBIissues to express their frustrations about the ongoing transaction failures. Many felt that the lack of communication from the bank regarding the outages added to their dissatisfaction.
In response to the widespread complaints, the National Payments Corporation of India (NPCI) acknowledged the issues on X, asking customers to share screenshots of their failed transactions for assistance. The NPCI clarified that while some banks were experiencing intermittent transaction declines due to the financial year closing, the UPI system itself was functioning correctly.
SBI had previously announced a planned downtime for its services due to annual financial year closing activities, which are essential for reconciling accounts and preparing for the new fiscal year. This downtime was scheduled from 1:00 PM to 4:00 PM IST on April 1, 2025. However, many customers were caught off guard as they faced issues with UPI and mobile banking services much earlier in the day.
In an official statement, SBI confirmed that its digital services would be unavailable during the specified hours, advising customers to utilize UPI Lite and ATM services for their banking needs. UPI Lite, which allows for smaller transactions without requiring a UPI PIN, remained operational alongside ATM services.
"Due to Annual Closing activities our digital services will be unavailable to our esteemed customers between 1:00 PM to 4:00 PM (IST) on 01.04.2025. We request you to use UPI Lite and ATM Channels for uninterrupted services. We apologize for the inconvenience caused," SBI stated in their post.
Despite the bank's assurances, customers expressed anger over the lack of timely notifications regarding the disruptions. Many reported that they did not receive SMS alerts about the downtime, leading to confusion and frustration.
As the day progressed, the situation continued to evolve. SBI's outage affected a large number of users, with complaints about mobile banking making up approximately 64% of the reports, followed by fund transfer issues at 33%, and ATM-related problems at 3%. The outage, which began around 8:15 AM, saw a peak in complaints as customers attempted to access their accounts and complete transactions.
In light of the disruptions, customers were encouraged to explore alternative payment methods, such as debit and credit cards from other banks, to avoid inconveniences. The bank's announcement regarding the downtime was intended to help customers plan their transactions accordingly, yet the unexpected early outages caught many by surprise.
April 1, 2025, marks the beginning of the new financial year in India, a time when banks close and reconcile their books for the previous year. This annual closing process is crucial for updating financial records, auditing accounts, and adjusting interest rates and loan balances for the new fiscal year. Both public and private sector banks observe this closure, which means that customers cannot conduct transactions at physical branches during this time.
In addition to the disruptions experienced by SBI, several bank holidays are scheduled throughout April 2025, including observances for Mahavir Jayanti, Ambedkar Jayanti, Good Friday, Bohag Bihu, Basava Jayanti, and Akshaya Tritiya. These holidays further complicate banking operations, as customers may face additional challenges when attempting to access services.
As the day unfolded, the NPCI continued to monitor the situation and work with the affected banks to address the transaction issues. Customers were advised to keep checking SBI's official website and social media channels for updates on the status of their services.
In summary, the disruptions faced by SBI on April 1, 2025, highlight the challenges that can arise during critical financial operations, such as year-end closings. While the bank has assured customers that services will be restored soon, the experience has raised questions about the effectiveness of communication strategies and the need for better customer service during such critical periods.
As the financial year progresses, customers will be watching closely to see how SBI addresses these issues and improves its communication strategies to prevent similar frustrations in the future.
