HDFC Bank
HDFC Bank announced that it will stop sending messages for low-value UPI transactions. From June 25, HDFC Bank customers will start receiving SMS alerts for UPI transactions worth more than Rs 100 while remittances, and a similar SMS if they receive more than Rs 500. The bank said email notifications will continue for all transactions.
HDFC Bank customers received the following notification through mail and SMS alert, which states that from June 25, 2024, all UPI transactions will be notified via email. Now get SMS alert only for transactions above Rs 100 (money sent/paid) and Rs 500 (money received).
Why is HDFC Bank changing this?
As per banking norms, an SMS must be received for every transaction above Rs 5,000. Despite this, many banks send messages for even low-value transactions. According to bankers, bulk SMS message costs Rs 0.01-0.03 per SMS.
While the daily average of UPI transactions is around Rs 40 crore, banks spend several crores on text message alerts every day. According to bankers, bulk SMS costs Rs 0.01-0.03 per SMS. The daily average of UPI transactions is around Rs 40 crore. Hence sending SMS incurs huge cost.
Why are banks promoting UPI Lite?
Additionally, banks are asking users to use UPI Lite for transactions up to Rs 500. HDFC Bank and other financial institutions hope to save costs by reducing the frequency of low-value transaction alerts, which will also facilitate customer alerts.
#HDFCBank has informed customers that effective June 25, it will stop sending SMS alerts for any #UPI spend below Rs 100 or receipt of money less than Rs 500.
Here’s more details 👇https://t.co/oa5JzedGTY#Payments | @HDFC_Bank
— Moneycontrol (@moneycontrolcom) May 29, 2024
It is anticipated that this change will improve customer experience and boost the adoption of UPI Lite for small transactions. Customers can also register their email address with HDFC Bank to receive notifications about every UPI transaction.
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