Banks face intermittent transaction declines; NPCI attributes disruption to financial year-end closure

Banks across India faced difficulties processing transactions, facing intermittent transaction declines on Tuesday due to financial year-end closing.

The National Payments Corporation of India (NPCI), which operates the Unified Payments Interface (UPI), confirmed the development in a post on X.

“Today, due to the financial year closing, some of the banks are facing intermittent transaction declines. The UPI system is working fine, and we are working with the concerned banks for necessary redressal,” NPCI said.


This disruption marks the second such instance in less than a week, where users faced issues completing online transactions.

UPI disruption impacts thousands of Indians

UPI faced a major disruption on the evening of March 26, 2025, with thousands of users unable to complete payments or fund transfers.

Digital payment platforms such as Google Pay, PhonePe, and others were affected, prompting users to flood social media with reports of failed transactions.

According to Downdetector, complaints surged past 23,000 after 7:00 PM on March 26, with many users expressing frustration over incomplete transactions.

The outage lasted for nearly an hour, during which users were unable to process payments or complete transfers, until the system began stabilizing.

In response to the issue, the National Payments Corporation of India (NPCI) issued a statement attributing the disruption to intermittent technical issues. While the UPI system itself was functioning well, NPCI clarified that the failures were linked to issues at certain banks, which had been caused by the closing of the financial year 2025 (FY25).

“Today, due to the financial year closing, some of the banks are facing intermittent transaction declines. The UPI system is working fine, and we are working with the concerned banks for necessary redressal,” NPCI said in an official statement.

Despite the initial wave of concerns, the NPCI had reassured the public that the situation was being addressed.

“NPCI faced intermittent technical issues owing to which UPI had partial decline. The same has been addressed now and the system has stabilized. We regret the inconvenience,” it had said.