NPCI reports intermittent UPI transaction rejections; attributes it to financial year closing

The National Payments Corporation of India (NPCI), which operates the Unified Payments Interface (UPI), on Tuesday announced that some banks were facing an issue, with UPI transactions being declined occasionally.

In a post on X, the NPCI stated, “Today due to financial year closing, some of the banks are facing intermittent transaction declines.”

The previous financial year closed on March 31 and a new financial year (FY26) commenced on April 1.


The post continued, “UPI system is working fine, and we are working with the concerned banks for necessary redressal.”


The NPCI advised users facing issues to reach out directly to their respective banks for better support.

This follows a major UPI outage last week that disrupted payments and fund transfers for thousands, affecting platforms such as Google Pay and PhonePe.

On March 26, the number of complaints surged, with over 23,000 logged after 7 PM.

The NPCI described the disruption as a “partial decline” due to technical difficulties, which it said were promptly addressed.

As UPI remains central to India’s digital payments, such outages highlight the need for stronger backup systems to maintain service continuity, say experts.

Additionally, NPCI has introduced new guidelines, effective April 1 (today), requiring banks and UPI apps to update mobile number records weekly to reduce errors caused by recycled or changed numbers.