HDFC Bank has announced it will stop sending SMS alerts for UPI transactions below Rs 100 starting June 25. Customers will still receive email alerts for all UPI transactions.
Text notifications will be limited to transactions above Rs 100 or when receiving more than Rs 500 via UPI.
Reasons Behind the Change
The decision stems from customer feedback and the high cost associated with sending bulk SMS messages.
The average value of UPI transactions has been decreasing, indicating a trend towards more frequent, smaller payments.
With banks spending several crores of rupees daily on SMS notifications due to the high volume of transactions, this move aims to cut down costs.
UPI transactions have surged past the 100 billion mark, reaching around 118 billion by the end of the year, according to the National Payments Corporation of India (NPCI).
Customer Guidance
HDFC Bank advises customers to ensure their primary email addresses are up to date to continue receiving all transaction notifications.
The bank highlighted that UPI transaction apps also provide alerts, reducing the need for SMS notifications for low-value transactions.
This adjustment is a response to the increasing frequency of smaller payments through UPI.
