A recent report from Hindu Business Line highlighted disparities in UPI transaction failure rates among Indian banks for FY25, with public sector banks showing higher failure rates compared to their private counterparts.
SBI, India's largest lender, recorded the highest number of UPI transaction failures in FY25. In March alone, SBI processed over 4.95 billion transactions.
SBI’s technical decline (TD) rate in March stood at 0.9%, far higher than its peers.
Bank of Baroda reported just 0.03% TD. HDFC Bank had a 0.02% TD, and Axis Bank matched BOB at 0.03%. ICICI Bank logged 0.13%.
Jio Payments Bank had a 7.23% technical decline rate, while Bandhan Bank recorded 2.48% in March. These were major banks to report high TD rates.
Failures happen either due to business decline (user error) or technical decline (bank/server error). TDs are a major concern for smooth digital payments.
NPCI, the governing body of the UPI, met lenders recently to discuss UPI outages. They have informally asked banks to keep technical declines below 1%.
According to experts, lenders, especially in public sector, need to invest in upgrading their digital infrastructure and addressing technical shortcomings to enhance UPI transactions.
