HDFC Bank, one of India’s leading private sector banks, has announced a significant update regarding its SMS alert service for UPI transactions. Effective June 25, 2024, the bank will discontinue SMS alerts for UPI transactions under ₹100. However, email alerts will still be sent for all types of transactions, ensuring that customers remain informed about their account activities.

Key Changes to SMS Alerts

From June 25, 2024, HDFC Bank customers will notice the following changes in their SMS alert service for UPI transactions:

  • No SMS Alerts: For UPI transactions below ₹100.
  • SMS Alerts: Will be sent for UPI transactions above ₹100.
  • Receiving Amounts: SMS alerts will be sent only if the received amount exceeds ₹500.
  • Email Alerts: Will continue for all transactions, regardless of the amount.


Why the Change?

The primary reason behind this change is the cost associated with sending bulk SMS messages. Here are some insights:

  • Cost: Each bulk SMS costs between ₹0.01 to ₹0.03.
  • Transaction Volume: The daily average of UPI transactions is around 40 crore.
  • Regulatory Requirement: Banks are mandated to send SMS alerts for transactions above ₹5,000. Despite this, many banks, including HDFC, have been sending alerts for lower amounts as well, leading to substantial costs.


Background on UPI

Unified Payment Interface (UPI) has revolutionized the way transactions are conducted in India. Here’s a brief overview:

  • Launch Year: 2016
  • Managed By: National Payments Corporation of India (NPCI)
  • Functionality: UPI is a real-time payment system that allows instant transfer of funds between two bank accounts through a mobile platform.


Impact on Customers

The discontinuation of SMS alerts for transactions under ₹100 means that customers need to rely more on email alerts to track their low-value transactions. However, the bank assures that this change will not affect the security or transparency of the transaction process.

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