On Thursday, August 7, Unified Payments Interface (UPI) services suffered a major nationwide disruption, leaving countless users unable to complete digital transactions and prompting businesses across India to turn to backup payment options. Based on figures from Downdetector, close to 200 UPI-related problems were logged during the disruption period. Among these, 61% of users struggled to complete payments, 30% experienced difficulties transferring money, and 9% said they were completely unable to access their UPI applications.
NPCI says bank-level technical glitches:
The Unified Payments network operator, the National Payments Corporation of India (NPCI), responded to the outage through a statement shared on the social media platform X (previously known as Twitter).
“Regret inconvenience on intermittent UPI connectivity issues, as a few of the banks were having some internal technical problems. NPCI systems have been working fine, and we have worked with these banks to ensure quick resolution,” it stated.
Regret inconvenience on intermittent UPI connectivity issues as few of the banks were having some internal technical problems . NPCI systems have been working fine and we have worked with these banks to ensure quick resolution.
— NPCI (@NPCI_NPCI) August 7, 2025
The disruption affected payment services across several leading Indian banks, such as State Bank of India (SBI), HDFC Bank, Kotak Mahindra Bank, and Bank of Baroda.
UPI Transactions in July:
The recent outage stands out due to UPI’s overwhelming presence in India’s digital payment landscape. According to fresh data from the National Payments Corporation of India (NPCI), the platform saw a rise in both transaction count and total value in July, recovering from a dip recorded in June.
In July, the UPI platform handled 19.47 billion transactions, marking an increase from 18.40 billion in June. The total transaction value also climbed, reaching Rs 25.08 lakh crore compared to Rs 24.04 lakh crore the previous month. On an annual basis, the number of transactions surged by 35%, while the total value of those transactions grew by 22%.
Effective August 1, 2025, a series of revised regulations concerning Unified Payments Interface (UPI) transactions have been implemented, based on the latest directives from the National Payments Corporation of India (NPCI). These updates are designed to improve the performance and overall user experience of digital payment systems.