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In today’s newsletter:

• Why was UPI down
• ONDC's cart hits a bump 
• TCS gets prime land in Vizag for a song 

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UPI glitched again on April 12. And no, it wasn’t because of National Payments Corporation of India (NPCI)’s own servers—but because banks just couldn’t stop checking in.

UPI experienced a lower success ratio on April 12 between 11:30 am and 4:30 pm, according to a root cause analysis (RCA) report from the NPCI accessed by us.

The NPCI report revealed that several banks were checking transaction statuses repeatedly, exceeding the permitted frequency.

• Banks are allowed to check transaction status only at 90-second intervals

However, due to an initial drop in the success ratio, the volume of automated status checks surged, overwhelming the system and prolonging the downtime. 

Armed with the RCA report, NPCI today met banks and advised them not to check for transaction status repeatedly.

• Banks typically send these repeated requests when the payment receiver’s bank server is unresponsive

Isolated instances of UPI unavailability are common when a few banks face server issues. However, technical issues at NPCI are rare. This incident escalated from banks to NPCI level quickly.

Also read: India targets 300 million new users for UPI payments platform

UPI faced four outages in three weeks. The platform facilitates 83% of all digital transactions in the country. The March 26 and April 12 incidents have shaken the confidence in the system.

More than 86% of all UPI transactions are below Rs 500. Banks’ legacy systems are not designed to handle such micropayments

• NPCI attributed the March 26 outage to a hardware snag

• It resulted in an unscheduled downtime of 95 minutes

Meanwhile, NPCI is upgrading the UPI infrastructure to avoid similar incidents.

Dig deeper

With the Open Network for Digital Commerce's (ONDC) retail engine stalling, it is now calling a cab. But will the mobility wave last?

Once tipped to be the "UPI of e-commerce", ONDC’s retail orders are now on a slippery slope.

• After peaking during the 2024 festival season, retail’s share in ONDC fell from 47% in October 2024 to 29% by March 2025
  
  
• Food and fashion segments saw double-digit dips, with food and beverage (F&B) orders down 10% month-on-month (MoM) in February

Yes, but why? Poor user experience, fading discounts, and quick commerce competition.

With retail lagging, ONDC is banking on mobility to keep the engine running. And it's largely riding on one name - Namma Yatri.

• Mobility grew 12% MoM in March, now accounting for 56% of ONDC’s volume, up from 40% in October

But analysts warn that dependence on a single player does not constitute an “open” network.

• Ola is still hanging out in food and logistics, while Uber isn’t in the frame yet 

Industry watchers are of the view that, for ONDC to truly disrupt transport, it’ll need a fleet — not a one-man show.

CEO T Koshy’s recent exit caps a hat-trick of top-level departures in six months. The board will likely hunt for startup-style speed over long-term patience, an industry executive familiar with ONDC’s workings said.

• Meanwhile, interim management is in place  

If ONDC wants to scale like UPI, analysts say the network must quickly double down on user experience, branding, and seller visibility.

Dig deeper

The Andhra Pradesh government has allotted Tata Consultancy Services (TCS) 21.16 acres of land in Visakhapatnam for just 99 paisa to build a development centre, taking a leaf out of PM Narendra Modi’s playbook when he was the Chief Minister of Gujarat.

• TCS will likely invest Rs 1,370 crore, creating around 12,000 jobs

Modi’s strategy of offering land to Tata Motors in Sanand for 99 paisa was credited as the catalyst for the state's automotive sector. 

• Now, Andhra Pradesh is attempting to replicate that success—this time to boost its IT industry and put Vizag “on every tech company’s map”

The move aims to create jobs and attract IT investments to the state, which has largely lost out to Telangana, particularly Hyderabad, in recent years.

Last month, India’s largest IT services company announced that it will acquire the land and building of commercial real estate firm Darshita Southern India Happy Homes for Rs 2,250 crore, to set up a delivery centre in Bengaluru.

• This expansion comes at a time when the company is facing short-term uncertainties and business challenges, particularly in light of the US administration's new tariff policies under President Trump

Dig deeper

India’s new Rs 22,919 crore scheme wants to shift the country’s electronics industry from assembly to full-fledged component manufacturing.

• The Electronics Component Manufacturing Scheme (ECMS) offers targeted incentives for making critical parts like PCBs, lithium-ion cells, and sub-assemblies locally, aiming to boost value addition and reduce import dependence.

Find out more

• Swiggy has launched an AI-powered app 'Pyng', marking the hyperlocal delivery player's entry into professional services.
  
  
• OpenAI unveiled GPT-4.1, its latest flagship AI model, introducing significant advancements in coding capabilities, long-context comprehension, and instruction following.

A friend in need is a friend (A)Indeed.

AI companions are becoming a preferred choice for many Indians who want to avoid uncomfortable conversations with other humans or avoid being judged. 

• Newly launched platform Bezu has got 10,000 users in over a month.

People are also paying for these virtual relationships--- Rs 10-30 in India and $6-10 in the US. 

Find out more

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