How is NPCI Guiding Banks to Mitigate UPI Outages?
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Synopsis
In light of the recent UPI outage, NPCI's new guidelines aim to regulate API requests from banks, ensuring reliability in digital transactions. This response is crucial for preventing future disruptions and safeguarding user experiences in India's payment landscape.
Key Takeaways
- NPCI mandates monitoring of UPI API requests.
- Banks must adjust timing for check transaction status APIs.
- Maximum of three API checks allowed within two hours.
- Regular audits are required to review API usage.
- No batch processing of non-financial APIs is permitted.
New Delhi, April 29 (NationPress) Following the significant unified payments interface (UPI) outage earlier this month, the National Payments Corporation of India (NPCI) has mandated banks to diligently monitor and regulate all API requests sent to UPI for optimal usage.
The incessant checking of transaction statuses by banks led to the widespread UPI outage on April 12, leaving countless users in a lurch.
In an official notification, the NPCI stated that banks should commence the first check transaction status API after a span of 90 seconds from the initiation/authentication of the original transaction.
“Post timer adjustments, members may initiate the same after 45 to 60 seconds from the initiation/authentication of the original transaction, following NPCI's revised communication,” the agency noted.
Banks are allowed to initiate a maximum of three check transaction status APIs, ideally within two hours from the initiation/authentication of the original transaction, as per the guidelines.
Payment service provider banks are obligated to ensure all API requests sent to UPI are monitored and moderated to curtail excessive repeat APIs for the same or older transactions.
The notification further stipulates that payment service provider banks will conduct audits with a “Cert-in empanelled auditor immediately to review the API usage and existing systems behavior, with annual evaluations thereafter.”
“PSP banks/Acquiring Banks must guarantee that there is no batch processing (by processing files and converting them to online requests at high TPS) of any non-financial APIs sent to UPI Online systems,” the notification explained.
In cases of a U48 error (Transaction ID not present or not found in UPI System) occurring within the first two hours from the initiation of the original transaction, banks are advised to refer to the NPCI settlement files (available to Payee, Payer, or PSP banks) post the settlement cycle.
“Alternatively, members may initiate a maximum of one check transaction status API on UDIR (Unified Dispute and Issue Resolution), which checks URCS (UPI Backoffice) to retrieve the final settlement status of the transaction,” stated the NPCI.
On April 12, digital payments through UPI faced a nationwide outage impacting millions of users, obstructing local shopping, bill payments, and business transactions. Major banking applications from SBI, ICICI, and HDFC were also affected, indicating a broader issue within the UPI network infrastructure.
Point of View
It is vital to recognize the NPCI's proactive approach in addressing the recent UPI outage. By implementing stringent measures to monitor API usage, the NPCI not only aims to enhance the reliability of digital transactions but also reassures millions of users about the integrity of the UPI system. This initiative is essential for maintaining trust in India's rapidly evolving digital payment landscape.
NationPress
20/07/2025
Frequently Asked Questions
What triggered the recent UPI outage?
The recent UPI outage was primarily triggered by excessive transaction status checks by banks, overwhelming the system.
How is NPCI addressing the API usage issue?
NPCI is directing banks to monitor and moderate API requests, limiting the frequency and ensuring better management of transaction status checks.
What are the new guidelines for banks regarding UPI?
Banks are now required to initiate check transaction status APIs after specified time intervals and conduct regular audits to ensure compliance.
How does this impact UPI users?
These measures are designed to improve the reliability of UPI, ultimately enhancing user experience and confidence in digital transactions.
What should banks do in case of a U48 error?
Banks should refer to NPCI settlement files after the settlement cycle for transactions that result in a U48 error within the first two hours.
