Hours after outage across India, UPI system restored

Several popular UPI apps, including Google Pay, PhonePe, and Paytm, were affected. While some banks, such as ICICI Bank, remained functional, others, including HDFC Bank, experienced disruptions. Users flooded Downdetector, a platform that tracks service outages, with complaints about failed transactions and connectivity issues.

UPI (Unified Payments Interface) is a payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). It enables users to send and receive money instantly using their phone numbers or unique UPI IDs. Unlike other payment methods like National Electronic Funds Transfer (NEFT) and Immediate Payment Service (IMPS), UPI also allows users and merchants to request payments by simply sending a message through their banking app.

One of the key reasons behind UPI’s success is that it is entirely free of charge. Users can transfer any amount of money at any time without incurring additional fees from NPCI. It is also widely used for small payments at local shops, as there is no minimum transaction limit. Additionally, UPI offers a convenient AutoPay feature, which allows users to set up recurring payments for bills and subscriptions, making transactions seamless and hassle-free.

You might have noticed that different UPI apps assign different UPI IDs to you. This happens because each app relies on different banking partners to process transactions. Your UPI ID varies depending on the bank linked to your account. For example, in Google Pay, common UPI IDs include “@oksbi,” “@okhdfcbank,” “@okaxis,” and “@okicici.”

If you’re concerned about the safety of UPI transactions, you can rest assured. UPI payments are safeguarded by stringent security protocols and regulatory measures established by the RBI, ensuring the safety of both your money and personal data.

UPI employs advanced encryption technologies like TLS, AES, and PKI to secure sensitive data, including user credentials and transaction details, during transmission. Additionally, UPI uses a Virtual Payment Address (VPA) instead of sharing bank account details, reducing the risk of data exposure and unauthorized access.

Another key security feature of UPI is its device-specific functionality. Your UPI account can only be accessed from the registered device, preventing unauthorized use from other devices. Furthermore, the RBI enforces strong authentication measures, such as two-factor authentication (2FA) and biometric verification, to enhance security.

While the NPCI ensures robust security on its end—stating that UPI accounts cannot be hacked—fraudsters can still exploit user vulnerabilities. For instance, in 2022, over 95,000 cases of UPI fraud were reported due to scams that trick users into revealing sensitive information or granting access to their devices.