HDFC Bank to stop SMS alerts for UPI payments up to Rs 100, email notifications to continue

HDFC Bank will be stopping SMS alerts for UPI transactions below Rs 100 from June 25, meaning customers will only receive text notifications for transactions above this amount or if they receive more than Rs 500 via UPI. 

Email alerts for all transactions will continue to be sent.  The change follows customer feedback indicating that low-value transaction alerts were unnecessary, especially since UPI payment apps also send notifications. 

The cost of sending bulk SMS messages adds up, with banks spending a few crores of rupees daily given the high volume of UPI transactions, which average around 40 crore per day.

HDFC Bank has advised customers to ensure their primary email addresses are up to date to receive all transaction notifications. The average value of UPI transactions has been decreasing, reflecting an increase in smaller, more frequent payments. 

In 2023, UPI transactions surpassed the 100 billion mark, reaching around 118 billion by year-end, according to the National Payments Corporation of India (NPCI).

Banks are also promoting UPI Lite for transactions up to Rs 500. This feature allows a small amount of money to be set aside within the app, enabling quick payments without the need for second-factor authentication.