MUMBAI: HDFC Bank has said it will stop sending text alerts for low-value UPI transactions – so customers will get SMS alerts only if they send more than Rs 100 or if they receive over Rs 500 via UPI. Email alerts will continue to be sent to HDFC Bank customers for all transactions.
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According to norms, banks are required to send text messages for transactions over Rs 5,000, however, many send alerts for lower-value debits. The bank said that it had received feedback indicating that alerts for low-value transactions were ‘not useful’. There is duplication of notifications as apps used for UPI payments also send out alerts.
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According to bankers, there is a cost of Rs 0.01-0.03 for bulk text messages. Given that UPI transactions are averaging around 40 crore a day, banks spend a few crores of rupees a day on text messages.
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Banks are also encouraging customers to shift to UPI Lite for transactions up to Rs 500. Under UPI Lite, a small amount of money is set aside by the app, enabling quick payments without the need for second-factor authentication.
