UPI outage hits transactions as year-end rush strains bank servers

A surge in UPI transactions and year-end bank closures led to a system outage, causing transaction failures, which the NPCI attributed to high volumes and financial year-end settlements at banks

A year-end rush at banks, coupled with rising volumes of India’s real-time payments system, Unified Payments Interface (UPI), led to a bank-wide outage on Tuesday, sources said.

 

Users encountered issues in processing digital payment transactions. The NPCI attributed the technical declines to financial year-end closing at the banks' end.

 

Industry players point out that there could be three reasons for this outage — internet connectivity issues, bank server overload due to capacity constraints, or technical glitches at UPI.

 

Executives Business Standard spoke to said financial institutions and banks will be required to continually invest in data centre capabilities to maintain