On April 1, 2025, customers of the State Bank of India (SBI) experienced significant disruptions in mobile banking and online services, as the bank conducted its annual closing activities. The outages affected thousands of users nationwide, leading to widespread frustration and confusion.
According to data from Downdetector, complaints surged dramatically, with approximately 886 reports of issues related to digital banking logged by 1 PM IST. The statistics revealed that around 64% of these complaints were linked to mobile banking problems, while 33% pertained to fund transfers, and the remaining 3% involved ATM-related issues.
SBI took to social media platform X (formerly Twitter) to inform its customers about the scheduled downtime. The bank announced that its digital services would be unavailable from 1 PM to 4 PM IST, urging users to utilize UPI Lite and ATM channels for uninterrupted service during this period. In a post, SBI stated, "Due to annual closing activities, our digital services will be unavailable to our esteemed customers between 1 PM to 4 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."
The disruptions coincided with the implementation of new UPI regulations, which took effect on the same day. These rules require banks and UPI applications to update mobile number records weekly to minimize transaction errors. As part of this initiative, inactive UPI-linked mobile numbers will gradually be removed, rendering them unusable for transactions. This change may have contributed to the difficulties many users faced while trying to access mobile banking services.
The National Payments Corporation of India (NPCI) also acknowledged the issues affecting various banks, including SBI. In a statement on X, NPCI explained, "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." This assurance, however, did little to alleviate the concerns of SBI customers who were left unable to conduct essential transactions.
Many users expressed their frustration on social media, reporting failed transactions and delays in accessing their accounts. Complaints peaked between 11 AM and 11:30 AM IST, indicating a growing concern among customers as they attempted to navigate the disruptions.
The impact of these outages was felt not only by individual customers but also by businesses relying on SBI’s digital banking services for daily transactions. The bank's decision to conduct annual closing activities on April 1, coinciding with the start of the new financial year, raised questions about the timing and communication of such significant maintenance work.
In light of the disruptions, SBI's suggestion to use UPI Lite, which allows for small transactions of up to Rs 1,000 without requiring a PIN, seemed to be a practical alternative for customers needing to make urgent payments. However, the reliance on UPI Lite also highlighted the limitations of the existing infrastructure during peak times.
Earlier in March, SBI customers had faced similar challenges when technical issues led to prolonged outages of over four hours. The bank had then assured users that the problems were being addressed, but the recurrence of issues on April 1 raised further concerns about the reliability of SBI's digital services.
As the day progressed, reports of outages continued to flood in, with users from various regions sharing their experiences. Complaints indicated that the problems were not isolated to SBI's services alone; many users of other UPI-related applications, such as Google Pay and Paytm, also reported difficulties, suggesting a broader issue within the digital payment ecosystem.
In response to the growing complaints, NPCI reiterated its commitment to resolving the problems swiftly. "NPCI had faced intermittent technical issues, owing to which UPI had partial decline. The same has been addressed now, and the system has stabilized. Regret the inconvenience," the payment regulator communicated.
The disruption of SBI's services on April 1 serves as a reminder of the vulnerabilities inherent in digital banking systems, particularly during critical periods such as financial year-end closures. Customers are increasingly reliant on these services for their daily transactions, and any interruption can have far-reaching consequences.
As the situation unfolded, many customers remained hopeful that SBI would take the necessary steps to improve its digital infrastructure and communication strategies to prevent similar issues in the future. The bank's ability to restore confidence among its users will be crucial as it navigates the challenges posed by an evolving digital landscape.
In conclusion, the outages experienced by SBI customers on April 1, 2025, highlighted the need for robust digital banking solutions that can withstand peak demands and maintain service continuity. As the financial sector continues to embrace technology, ensuring the reliability of these services will be paramount for customer satisfaction and trust.
