India once again witnessed disruptions in Unified Payments Interface (UPI) services, causing crores of users to face trouble in making digital payments.
On the evening of August 7, many people suddenly found that payments were not possible on platforms like Google Pay, PhonePe and Paytm.
Users shared their complaints on social media and raised questions as to why this problem was happening on such a large scale.
This is the fourth time this year that UPI services have been affected. According to reports, several major banks including State Bank of India, Bank of Baroda faced technical glitches in their transaction systems.
Downdetector started receiving a flood of complaints from around 7:45 pm, and by 8 pm, around 2,147 complaints had been registered. About 80% of these complaints were related to non-payment.
National Payments Corporation of India (NPCI) issued a statement saying that UPI connectivity was disrupted in some banks due to internal technical problems, while NPCI’s system was functioning normally.
The organization said that it has resolved the problem in collaboration with the banks.
It is important to understand the importance of UPI, as it has become the largest medium of digital payment in India.
In June 2025, 18 billion transactions worth more than ₹24 lakh crore were done through it, while in July 2025 this figure reached Rs 25.08 lakh crore.
In May also, transactions worth about 25.14 lakh crore were recorded. According to NPCI, in July, on an average, transactions worth ₹628 million were done per day.
Recently, there has been a discussion about whether a separate fee can be charged for UPI services. Currently, the government encourages citizens to make digital payments by giving subsidy on it.
The repeated technical glitches have raised questions about whether UPI needs to be upgraded to keep up with growing demand, especially as it expands overseas and India considers it the face of its digital payments revolution.