Latest news with #ImmediatePaymentService
India.com
3 days ago
- Business
- India.com
Govt Prioritising Lower Denomination Notes And Digital Transactions: Sitharaman
New Delhi: Union Finance Minister Nirmala Sitharaman said on Saturday that the priority of the government is to "make sure" that currency in circulation will be in "lower denominations" and spreading more awareness for "doing digital transfers." Answering a question on the future of Rs 500 currency, Sitharaman said, "We are making every effort to make sure that currency will be in the lower denominations, used much more than the higher, as the Rs 2000 is almost completely out of circulation, except for possibly 0.02, which is still lying outside. Others have given it to the banks." "We need to have more digital awareness built so that people see a benefit in doing digital transfers," the Union Finance Minister said at the 'National Commemorative Seminar on 60 Years of Pt Deendayal Upadhyaya Integral Humanism Lectures' in the national capital. In recent years, India has witnessed an unparalleled rise in digital transactions, marking a significant milestone in its journey towards becoming a cashless society. At the forefront of India's digital payment revolution is UPI with a record hit of 16.73 billion transactions in December 2024. In addition to this, Immediate Payment Service (IMPS) and FASTag have emerged as pivotal players, making financial transactions faster, more accessible, and secure. As of recent data from the National Payments Corporation of India (NPCI), UPI has set a new record by processing over 16.73 billion transactions, with a staggering transaction value of Rs 23.25 lakh crore. This is a notable jump from Rs 21.55 lakh crore in November. In 2024, UPI processed around 172 billion transactions, marking a 46 per cent increase from 117.64 billion in 2023. This rise underscores a broader cultural shift toward financial inclusivity, with UPI being a central pillar.
Time of India
3 days ago
- Business
- Time of India
Govt prioritising lower denomination notes and digital transactions: Sitharaman
Union Finance Minister Nirmala Sitharaman said on Saturday that the priority of the government is to "make sure" that currency in circulation will be in "lower denominations" and spreading more awareness for "doing digital transfers." Answering a question on the future of Rs 500 currency, Sitharaman said, "We are making every effort to make sure that currency will be in the lower denominations, used much more than the higher, as the Rs 2000 is almost completely out of circulation, except for possibly 0.02, which is still lying outside. Others have given it to the banks." "We need to have more digital awareness built so that people see a benefit in doing digital transfers," the Union Finance Minister said at the 'National Commemorative Seminar on 60 Years of Pt Deendayal Upadhyaya Integral Humanism Lectures' in the national capital. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo In recent years, India has witnessed an unparalleled rise in digital transactions , marking a significant milestone in its journey towards becoming a cashless society . At the forefront of India's digital payment revolution is UPI with a record hit of 16.73 billion transactions in December 2024. Live Events In addition to this, Immediate Payment Service (IMPS) and FASTag have emerged as pivotal players, making financial transactions faster, more accessible, and secure. As of recent data from the National Payments Corporation of India (NPCI), UPI has set a new record by processing over 16.73 billion transactions, with a staggering transaction value of Rs 23.25 lakh crore. This is a notable jump from Rs 21.55 lakh crore in November. In 2024, UPI processed around 172 billion transactions, marking a 46 per cent increase from 117.64 billion in 2023. This rise underscores a broader cultural shift toward financial inclusivity, with UPI being a central pillar.
Time of India
08-05-2025
- Business
- Time of India
HDFC Bank schedules service downtime on May 9–10: UPI, net banking, card transactions to be affected
HDFC Bank has announced scheduled maintenance on May 9 and 10, 2025, which will temporarily disrupt several of its key services including UPI transactions, net banking, debit/credit card usage, and loan and demat services. The bank said these updates are part of routine infrastructure upgrades and have been deliberately timed for the early morning hours—typically low-traffic periods—to minimize inconvenience to customers. On May 9, customers will face limited access to card-based services. Debit card transactions will be unavailable between 12:30 AM and 2:30 AM IST, affecting both online and offline usage, according to an ET report. Operation Sindoor India foils Pakistan's attack on Jammu airport: What we know so far How India used 'Sudarshan Chakra' to take down Pak drones, missiles Operation Sindoor: Several airports in India closed - check full list Additionally, e-commerce transactions using HDFC Bank debit or credit cards will not be processed between 12:30 AM and 2:00 AM IST. During this 90-minute window, customers should avoid making online purchases using HDFC-issued cards. The bank's credit card services and statement features will also be down between 1:00 AM and 4:00 AM IST on May 9. Customers won't be able to perform credit card transactions or access/download their monthly statements during this three-hour maintenance window. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Cost Of Amusement Park Equipment From Mexico Might Surprise You Amusement Park Equipment | search ads Click Here On May 10, a more comprehensive maintenance schedule will affect net banking and mobile app services. From 2:30 AM to 5:30 AM IST, users will be unable to access their account information, make payments, or initiate fund transfers. This includes key payment methods such as Unified Payments Interface (UPI), Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS). Merchant payments and instant account opening will also be unavailable during this window. The bank also announced temporary suspension of loan and demat services on May 10. Loan-related transactions will be down from 4:30 AM to 6:30 AM IST, while demat account activities, including trading and other associated services, will be inaccessible between 5:00 AM and 7:00 AM IST. Additionally, credit card services will experience another disruption on May 10 between 5:00 AM and 7:00 AM IST. During this time, users may face issues with transactions or accessing card-related features. One of the most significant updates is a 4-hour downtime for UPI services on May 10, from 2:30 AM to 6:30 AM IST. The bank is upgrading its UPI infrastructure, and as a result, all UPI services—including those linked to HDFC savings and current accounts, RuPay credit cards, and third-party UPI apps—will be unavailable. Merchant UPI transactions routed via HDFC Bank will also be impacted. HDFC Bank has advised its customers to complete any critical transactions ahead of these maintenance windows to avoid disruption. The bank emphasized that the maintenance is necessary to enhance service efficiency, reliability, and user experience across its digital platforms. Customers are encouraged to stay updated through official communication from HDFC Bank and plan their banking activities accordingly during these brief but widespread service downtimes. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News18
28-04-2025
- Business
- News18
Why Is UPI Facing Frequent Disruptions? How Does The Interface Work? Explained
Last Updated: A probe done by NPCI, which manages UPI, shows the outages took place due to technical oversight – absence of transaction status check limiter in the system's architecture The outages in the Unified Payments Interface (UPI) in the months of March and April causing serious disruptions in apps like GPay and PhonePe call for attention to the growing concern over the reliability of the platform. Three major outages were reported in just three weeks on March 26, April 1 and April 12 have exposed certain vulnerabilities in the system that processes around Rs 25 lakh crore in monthly digital transactions. An investigation done by the National Payments Corporation of India (NPCI), which manages the UPI, reveals that the outages stemmed from technical oversight — the absence of transaction status check limiter in the system's architecture. The issue was identified to be caused by the flooding of 'Check transaction API. Further, it was observed that a few PSP Banks were also sending requests for 'Check transactions' ever for older transactions multiple times," stated NPCI. Let us understand how does UPI work, how NPCI manages transactions and what do the banks have to say about the platform. How Does UPI Work? A UPI is a smartphone application that allows users to transfer money between bank accounts. It is a single-window mobile payment system developed by the National Payments Corporation of India (NPCI). It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction. The payment is made in real-time, and is designed to enable peer-to-peer inter-bank transfers through a single two-click factor authentication process. The interface is regulated by the Reserve Bank of India (RBI). The pilot system was launched in India on April 11, 2016. Banks across the country started to upload their interface in August 2016. UPI uses existing systems, such as Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS), to ensure seamless settlement across accounts. It facilitates push (pay) and pull (receive) transactions and even works for over-the-counter or barcode payments, as well as for multiple recurring payments such as utility bills, school fees, and other subscriptions. Once a single identifier is established, the system allows mobile payments to be delivered without the use of credit or debit cards, net banking, or any need to enter account details. Why NPCI Had Several Outages? Srikanth Lakshmanan, a member of the Cashless Consumer project, quoted by The Hindu, said it is because of the Payment and Settlement Systems Act, 2007, which mandates that organisations involved in clearing transactions in bulk to be majority-owned by public sector banks. 'You don't do a PIN authentication, but other communication still goes through NPCI," Lakshmanan said. 'The NPCI has to say this transaction originated from your device and so on. This is why even though UPI Lite doesn't involve the PIN entry and decryption, it is still routed through NPCI since it's fundamentally an interoperable system. While UPI Lite is light, it still requires NPCI to be in the middle." How Technical Oversight Caused UPI Outage The NPCI limits banks to check a transaction's status only three times, with each request requiring a 90-second interval. However, this restriction was implemented by banks themselves rather than through NPCI's infrastructure. As per a repot by Moneycontrol, banks continued making non-stop transaction success checks that overwhelmed the system beyond its capacity. The NPCI has advised financial institutions and their partners to strictly adhere to the specified frequency of transactions checks instead of continuously querying the system. How Banks Have Had Rocky Relations With UPI Reports suggest that even though the system has revolutionised payments in India, there were over 58 crore transactions worth over Rs 73,000 crore on April 25, and banks were largely unable to collect any significant fees on transactions, even though there are costs attached to each of these. The RBI estimated that banks incur a cost of Rs 0.80 per transaction, due to SMS notification costs (which telecom operators collect for commercial messages), and the costs incurred in maintaining and updating records of each payment. However, they are not able to charge a Merchant Discount Rate (MDR) for these services, leaving them with few incentives to keep to rigorous uptime standards, as per The Hindu. The report suggested that system-wide downtimes are far fewer and shorter on commercial card networks like MasterCard and Visa as they have robust monitoring. The Ministry of Electronics and Information Technology has launched its annual UPI incentive programme for banks, which also has conditions that penalise banks whose performance suffers over the course of year. How RBI Controls NPCI The RBI on April 9 permitted NPCI to upwardly revise transaction limits in UPI for person-to-merchant payments (P2M) based on evolving user needs. 'To enable the ecosystem to respond efficiently to new use cases, it is proposed that NPCI, in consultation with banks and other stakeholders of the UPI ecosystem, may announce and revise such limits based on evolving user needs," RBI Governor Sanjay Malhotra said. Banks shall continue to have the discretion to decide their own internal limits within the limits announced by NPCI, the governor added. P2P transactions on UPI, however, will continue to be capped at Rs 1 lakh, as hitherto. Loans against the collateral of gold jewellery and ornaments are extended by regulated entities (REs) for both consumption and income-generation purposes. Prudential and conduct related regulations for these types of loans have been issued from time to time and they vary for different categories of REs. 'With a view to harmonising such regulations across REs while keeping in view their risk-taking capabilities, and also to address a few concerns that have been observed, it has been decided to issue comprehensive regulations, on prudential norms and conduct related aspects, for such loans," the governor said. The Reserve Bank has also proposed to make the Regulatory Sandbox (RS) framework 'theme neutral' and 'on tap' to foster continuous innovation and keep pace with the rapidly evolving fintech/regulatory landscape. (with inputs from PTI) Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : digital payments india News18 Explains Unified Payments Interface (UPI) Location : New Delhi, India, India First Published: April 28, 2025, 10:02 IST News explainers Why Is UPI Facing Frequent Disruptions? How Does The Interface Work? Explained
The Hindu
26-04-2025
- Business
- The Hindu
Why is UPI seeing frequent downtimes?
The story so far: In March and April, the Unified Payments Interface (UPI) system went down three times, causing significant disruptions in payments on apps like GPay and PhonePe, which rely on the system. One of the downtimes was caused by individual banks flooding the National Payments Corporation of India's (NPCI) systems with transaction status checks. How does UPI work? UPI payments work based on an architecture that was inherited from the Immediate Payment Service (IMPS). For UPI payments to work, a bank is required to join the UPI system and allow users to access their own accounts through a linked phone number, on a Payment Service Provider (PSP)'s app, like PhonePe or GPay. Practically every commercial bank, public or private, is on the UPI system. UPI is designed as an interoperable system, allowing any bank's account holders to sign up for the service on any app, and even multiple apps at the same time. This resembles a peer-to-peer system, where individual banks are all talking to each other, but in reality, practically every transaction is routed through the systems of the NPCI. 'The NPCI is essential in this process,' said Srikanth Lakshmanan, a member of the Cashless Consumer project, as it encrypts the PIN information — which only the bank knows — and sends the payment information forward to a payer's bank, which then executes the transaction. 'So if there's a downtime in the NPCI, there's no way your bank would get your PIN. This is where it is a single point of failure.' Why did the NPCI have several outages? The NPCI as an organisation is structured as a collective of banks, with public sector banks holding the bulk of its shareholding. This, Mr. Lakshmanan said, is because of the Payment and Settlement Systems Act, 2007, which mandates that organisations involved in clearing transactions in bulk have to be majority-owned by public sector banks. Led as it is by banks, the implementation too is largely left to them, though the NPCI has played a big role in designing and presiding over the UPI system. In the last few weeks, individual banks reportedly flooded the UPI system with 'check transaction' requests, which payer banks use to verify that a payment has been completed. That hit the single point of failure at NPCI, and took the system offline briefly. To reduce the impact of downtime like this, the NPCI has created something called UPI Lite, which allows users to set aside up to ₹2,000 for payments without having to punch in a PIN. But even such payments go through the NPCI's systems. 'You don't do a PIN authentication, but other communication still goes through NPCI,' Mr. Lakshmanan said. 'The NPCI has to say this transaction originated from your device and so on. This is why even though UPI Lite doesn't involve the PIN entry and decryption, it is still routed through NPCI since it's fundamentally an interoperable system. While UPI Lite is light, it still requires NPCI to be in the middle.' Why are banks peeved? Banks have historically had a rocky relationship with UPI. While the system has revolutionised payments in India — just on Friday, there were over 58 crore transactions worth over ₹73,000 crore — they are largely unable to collect any significant fees on transactions, even though there are costs attached to each of these. The RBI estimated that banks incur a cost of ₹0.80 per transaction, due to SMS notification costs (which telecom operators collect for commercial messages), and the costs incurred in maintaining and updating records of each payment. However, they are not able to charge a Merchant Discount Rate (MDR) for these services, leaving them with few incentives to keep to rigorous uptime standards. Individual banks go down far more frequently than the NPCI as a whole, and these outages result in increased payment decline events. System-wide downtimes are far fewer and shorter on commercial card networks like MasterCard and Visa, Mr. Lakshmanan said, as there is robust monitoring and service level agreements to enforce performance standards. However, he said, the Ministry of Electronics and Information Technology has tried a 'carrot and stick' approach, with its annual UPI incentive programme for banks, which comes attached with conditions that penalise banks whose performance suffers over the course of a year. The subsidy scheme compensates banks for their current inability to charge an MDR. 'If you're at the bottom [in terms of uptime], you get nothing,' Mr. Lakshmanan said.
