New Delhi:
HDFC Bank, a leading private sector bank, has announced a significant change regarding transaction alerts.
Starting June 25, 2024, the bank will no longer send SMS alerts for small transactions. Currently, customers receive text messages for every transaction, regardless of the amount.
However, HDFC Bank has decided to stop SMS notifications for transactions below certain thresholds.
Details of the New SMS Alert Policy
According to the bank’s communication with its customers, SMS alerts will not be sent for transactions under Rs 100 when spending and under Rs 500 when receiving money.
Despite this change, customers will still receive email alerts for all transactions.
HDFC Bank has advised its customers to ensure their email addresses are updated to continue receiving notifications.
Decline in Average Transaction Value
Over the past few years, the average value of transactions via Unified Payments Interface (UPI) has been decreasing.
The average transaction value dropped from Rs 1,648 in the second half of 2022 to Rs 1,515 in the second half of 2023,
indicating increased use of UPI for smaller transactions.
According to Worldline India’s report, the leading UPI apps by volume and value of transactions are PhonePe, Google Pay, and Paytm.
Data from the National Payments Corporation of India (NPCI) shows that UPI transactions surpassed 10 billion in 2023, reaching around 11.8 billion.
This policy change by HDFC Bank reflects the growing trend of smaller, more frequent transactions via digital platforms.
