HDFC Bank has made the decision to stop sending SMS alerts for low-value UPI transactions. Valid from June 25, customers will now receive notifications only for outgoing UPI transfers exceeding Rs 100 and incoming transfers above Rs 500.
HDFC Bank informed through both email and SMS that effective from June 25, 2024, the users will continue to receive email alerts for every UPI transaction. However, SMS notifications will now be sent only for transactions exceeding Rs 100 for payments made and Rs 500 for payments received.
This change follows banking rules that requirement of text alerts for transactions over Rs 5,000. However, HDFC Bank noted that alerts for smaller transactions were found unnecessary based on feedback, as they often duplicate notifications from UPI payment apps.
The actual reason behind this according to bank is that sending bulk text messages typically costs between Rs 0.01 to Rs 0.03 per message. Given that there are nearly 40 crores of UPI transactions daily, banks collectively spend several crores each day just on text message alerts. Yet, the users can opt to register their email address with HDFC Bank to receive notifications for all their UPI transactions.