UPI disruptions during wedding season lead to surge in cash transactions

Indore: The frequent Unified Payments Interface (UPI) disruptions in recent weeks, coinciding with the wedding season purchases, have left digital payment users stranded amidst online transactions. This has compelled many to revert to conventional cash payments to avoid transaction difficulties.
These technical snags have impacted trade, businesses, and individuals nationwide. Local vegetable vendors, grocery shop proprietors, and household shops have reported an uptick in cash transactions over the past two days amid digital payment system interruptions.
The latest disruption on Saturday marked the third UPI outage in the past 20 days. Traders indicate the repeated disruptions have fostered mistrust among users and adversely affected daily revenues. "This is the height of the wedding season. Buyers from nearby districts heavily rely on UPI payments, but the instability in the system has driven many away. Some shoppers left without purchasing anything because payments were either failing or delayed," said Vishal Sharma, president, Shri Marothiya Bazaar Vyapari Sangh.
The issue has triggered a notable shift towards cash usage in markets such as Marothiya Bazaar, Bajaj Khana, and Rajwada. Merchants say many transactions failed midway, and in several cases, payment confirmations arrived hours later, long after the customer left the store. "In at least five cases in a single day, I received UPI payments two hours later. Customers already paid cash by then. I had to call them to return the excess money," said Chirag Sharma, an owner of a multi-product shop at one of the busiest Bajaj Khana markets.
Traders said traditional local markets have been most severely affected by the UPI outage, as most customers travel from within a 100-150 km radius to Indore. Merchants reported numerous customers, particularly women, have switched to cash payments, whilst many had to leave empty-handed due to the technical malfunction.
Some traders also alleged that individuals facilitating instant UPI-to-cash transactions were charging commissions ranging from Rs 50 to Rs 100 per Rs 1,000, further burdening the consumers. Vegetable vendor Satish Kushwah from Dewas Naka said, "Unlike previously, many customers are offering cash for their purchases. Even we are requesting cash to remain secure, otherwise, it's troublesome for both customer and shopkeeper to wait endlessly for payment receipt."
With the wedding season at its peak and markets witnessing high footfall, local business owners said the National Payments Corporation of India (NPCI) should restore trust and ensure uninterrupted UPI services.