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India’s Unified Payments Interface (UPI), the backbone of digital transactions in the country, suffered a major outage yesterday, leaving millions of users unable to make payments. Popular platforms like Google Pay, Paytm, and PhonePe, along with major banking apps, experienced service disruptions, leading to widespread inconvenience.
The issue escalated in the evening, with Downdetector recording a surge in user complaints around 7 PM. Transactions failed across multiple platforms, with frustrated users reporting funds being debited but not credited to recipients. Some also faced errors preventing payments altogether.
A breakdown of complaints showed:
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Google Pay: 72% of complaints were related to payment failures, while website access and app functionality issues each accounted for 14%.
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Paytm: 86% of complaints centered around failed transactions.
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State Bank of India (SBI): Users reported difficulties with fund transfers (47%), mobile banking (37%), and online banking (16%).
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Overall UPI-related complaints: 84% were linked to failed payments, while 16% involved other technical issues.
Response from NPCI
The National Payments Corporation of India (NPCI), which operates the UPI system, officially acknowledged the disruption at 8:42 PM via a post on X (formerly Twitter). The organization confirmed that services had been restored but did not disclose the exact cause of the outage.
NPCI had faced intermittent technical issues owing to which UPI had partial decline. The same has been addressed now and the system has stabilised. Regret the inconvenience.
— NPCI (@NPCI_NPCI) March 26, 2025
As payments stalled, social media was flooded with reactions—ranging from frustration to humor. Memes went viral, highlighting the sudden realization of the importance of carrying cash. Many users shared their struggles with basic transactions, including payments at local shops, restaurants, and transport services.
This disruption underscores India’s heavy reliance on digital payments and raises concerns about the need for a more resilient infrastructure. With UPI handling a record 16.99 billion transactions in January alone, experts stress the importance of robust backup systems to prevent future outages.
What Should Users Do?
While services have resumed, some users may still experience intermittent issues. Affected individuals are advised to:
- Monitor their transaction history for failed payments.
- Wait for automatic reversals before attempting new transactions.
- Contact their banks if refunds are delayed.
- Keep alternative payment options available in case of further disruptions.
As digital payments become increasingly essential, this incident serves as a reminder that even the most reliable systems can experience downtime. Moving forward, strengthening India’s digital payment framework will be crucial in ensuring seamless financial transactions.
