Synopsis: HDFC Bank will cease sending text alerts for low-value UPI transactions, only sending SMS alerts for transactions exceeding Rs. 100 or receipts over Rs. 500. Email alerts will continue for all transactions. This decision follows customer feedback indicating low-value alerts were redundant due to UPI app notifications.
HDFC Bank will stop sending text alerts for low-value UPI transactions, providing SMS alerts only for transactions over Rs.100 or when customers receive over Rs.500 via UPI.
HDFC Bank has announced it will discontinue text alerts for low-value UPI transactions, meaning customers will receive SMS alerts only for payments exceeding Rs. 100 or for incoming transactions over Rs. 500 via UPI.
However, email alerts will still be sent to HDFC Bank customers for all transactions.
According to regulations, banks must send text messages for transactions above Rs. 5,000, although many banks also send alerts for lower-value transactions.
HDFC Bank stated that feedback indicated alerts for low-value transactions were "not useful," and noted the duplication of notifications from UPI payment apps.
Bankers highlighted that the cost of bulk text messages ranges from Rs. 0.01 to 0.03.
With UPI transactions averaging around 400 million per day, banks spend several crores of rupees daily on text messages.
Banks are also promoting the use of UPI Lite for transactions up to Rs. 500.
Under UPI Lite, a small amount of money is set aside by the app, allowing quick payments without the need for second-factor authentication.
In conclusion, HDFC Bank's decision to stop sending text alerts for low-value UPI transactions aims to reduce unnecessary notifications and cut costs associated with bulk messaging.
By limiting SMS alerts to transactions over Rs. 100 and receipts over Rs. 500, and continuing email alerts for all transactions, the bank addresses customer feedback and notification duplication issues.
This move aligns with the broader banking trend of encouraging the use of UPI Lite for quick, low-value transactions, thereby enhancing the efficiency of digital payments while managing operational expenses.
Related Questions
1. Why is HDFC Bank discontinuing text alerts for low-value UPI transactions?
HDFC Bank is discontinuing text alerts for low-value UPI transactions based on customer feedback indicating that these alerts were "not useful" and due to the duplication of notifications from UPI payment apps. This move aims to reduce unnecessary notifications and cut costs associated with bulk messaging.
2. What are the new thresholds for receiving SMS alerts from HDFC Bank?
HDFC Bank will send SMS alerts only for transactions over Rs. 100 or for incoming transactions over Rs. 500 via UPI. Email alerts will still be sent for all transactions.
3. What regulations apply to text message alerts for banking transactions?
Regulations mandate that banks must send text messages for transactions above Rs. 5,000. However, many banks, including HDFC Bank, also send alerts for lower-value transactions to keep customers informed.
4. How much do banks typically spend on bulk text messages?
The cost of bulk text messages ranges from Rs. 0.01 to 0.03. With UPI transactions averaging around 400 million per day, banks spend several crores of rupees daily on text messages.
5. What is UPI Lite, and how does it benefit users?
UPI Lite allows quick payments for transactions up to Rs. 500 without the need for second-factor authentication. It sets aside a small amount of money within the app, enhancing the efficiency of low-value digital transactions.
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