The government is stepping up efforts to reduce UPI transaction failures, with the finance ministry pushing banks to tighten systems and improve success rates, sources told NDTV Profit. Lenders have been asked to work closely with the National Payments Corporation of India (NPCI) to address the issue of rising transaction declines, particularly at smaller banks where failure rates are significantly higher.
NPCI is expected to review individual bank performance and recommend corrective measures, including infrastructure upgrades and better load management during peak hours.
The move comes as UPI volumes continue to surge, making reliability a key priority for sustaining user trust. Officials believe that reducing transaction failures will be critical to deepening digital payments adoption, especially among new users and in semi-urban and rural markets.
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