Many users faced issues while making payments through UPI (Unified Payments Interface) on Thursday evening, August 7, 2025. People complained that their payment screens froze, and some transactions took longer than usual to show confirmation. Users were confused and worried, thinking UPI might be down.
However, the National Payments Corporation of India (NPCI), which manages the UPI platform, later issued a statement to clear things up. NPCI said that the UPI system was running normally, and the problems happened because a few banks had internal technical issues. These problems caused delays or disruptions in payment processing for some users.
NPCI called these problems “intermittent UPI connectivity issues” and blamed certain banks that were having system errors. NPCI added that it worked closely with those banks to quickly fix the issues so that people could start using UPI smoothly again.
This incident highlights how even though UPI itself is usually stable, individual banks’ systems can still cause troubles for users. NPCI said it was committed to resolving such issues quickly by coordinating with the affected banks.
Even as users faced temporary problems, UPI continues to break new records in terms of usage. In July 2025, UPI saw its highest number of transactions ever — a massive 19.47 billion transactions in just one month. These transactions added up to a total value of ₹25.08 lakh crore, which is the second-highest monthly total so far. The highest monthly value was ₹25.14 lakh crore, recorded earlier in May 2025.
UPI is already active in seven countries and now powers 85% of all digital payments in India. It's also responsible for nearly half of all real-time digital payments worldwide. These numbers show how important and widespread UPI has become — not just in India, but globally.
But with this rapid growth, the systems behind UPI are facing heavy traffic and pressure. To manage this growing load and to ensure the system remains stable, NPCI has now introduced a new restriction on how many times a user can check their bank account balance using UPI apps.
From now on, users can only check their balance up to 50 times a day through UPI apps like Google Pay, PhonePe, Paytm, BHIM, and others. Earlier, there was no limit on balance checks. This new rule is meant to reduce the load on the UPI system and prevent system slowdowns or failures.
Experts believe this is a practical step to manage rising demand. Some users, intentionally or unintentionally, check their balance many times a day, which puts extra pressure on the system. By capping the number at 50, NPCI aims to keep the system smooth and avoid payment failures.
Even though UPI is free to use for the general public, it is not truly “cost-free.” Reserve Bank of India (RBI) Governor Sanjay Malhotra recently spoke about the hidden costs of running such a massive digital payments system.
He pointed out that while users do not pay anything, someone still has to bear the cost of maintaining the technology and infrastructure. He said, “Who pays is important, but not as important as the fact that someone must foot the bill.”
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Governor Malhotra’s comments hint at the need for a sustainable model for UPI in the long term. Whether it's the banks, payment apps, or a central government body, someone must continue to invest in the technology to ensure UPI remains reliable and secure.
There have already been discussions in the past about whether banks or fintech companies should share the cost or if there should be nominal charges for certain types of UPI transactions. However, the government has so far chosen to keep UPI free for users to promote digital inclusion.
While UPI continues to revolutionize digital payments in India and around the world, this recent glitch shows that even advanced systems can face trouble if banks are not able to maintain their end of operations. NPCI acted quickly to resolve the issue, but it also introduced a new balance check limit to keep systems stable.
As UPI usage continues to grow, ensuring that the system is both efficient and sustainable will be key. Whether it’s through technical upgrades, better cooperation with banks, or clearer rules, the focus will be on making UPI even more dependable for the millions who rely on it every day.
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