Several bank servers have been reported to have been down on Tuesday, affecting Unified Payments Interface (UPI) transactions throughout the country. Several users took to social media platforms and reported that they encountered issues while making UPI transactions. They took to X (formerly Twitter) to complain about not being able to complete the transaction. It was confirmed in a tweet that the National Payments Corporation of India had suffered from an outage which led to the failure of UPI transactions in some banks. 

A website monitoring service with issues received reports that the UPI service was not working for Kotak Mahindra Bank, HDFC Bank, State Bank of India (SBI), and others, according to Downdetector, a website monitoring service. According to reports on social media platforms, hundreds of bank servers have experienced widespread outages nationwide, impacting the Unified Payments Interface (UPI) transactions. 

Users were flooding social media platforms with details of these disruptions. As well, Downdetector, a company providing website monitoring services, received reports of ongoing outages affecting UPI as well as Kotak Mahindra Bank, HDFC Bank, State Bank of India (SBI) and others. The outage seems to affect UPI transactions made using several banks as well. 

In some cases, users have reported experiencing server problems when making UPI payments with HDFC Bank, Baroda Bank, Mumbai Bank, State Bank of India (SBI), and Kotak Mahindra Bank, among other banks. In addition to reporting UPI, Kotak Mahindra Bank and HDFC Bank's ongoing outage on Downdetector, a website that keeps an eye on outages and issues across the entire business landscape, Downdetector has also received reports of ongoing outages from users. 

Several users have reported having difficulty with the “Fund Transfer” process within their respective banks due to technical difficulties. A new high was reached by UPI transactions in January, with a value of Rs 18.41 trillion, up marginally by 1 per cent from Rs 18.23 trillion in December. During November, the number of transactions increased by 1.5%, reaching 12.20 billion, which is up by 1.5 per cent from 12.02 billion in October. 

In November, the number of transactions was 11.4 billion, resulting in a value of Rs 17.4 trillion. The NPCI data shows that the volume of transactions in January was 52 per cent higher and the value was 42 per cent higher than the same month of the previous financial year, according to NPCI data. 

Earlier in November 2023, a report stating that the government was considering implementing a minimum time constraint within the initial interaction between two individuals who are carrying out transactions exceeding an adjustable amount was published. 

The Indian Express reported that, according to government sources, the proposed plan would dictate a four-hour timeframe to be imposed on the first digital payment between two users, particularly for transactions exceeding Rs 2,000, based on inputs that were received from the government.