HDFC Bank has informed the customers that it will stop sending SMS alerts for any UPI (Unified Payments Interface) payment spent below Rs 100 or receipt of money less than Rs 500. As per the bank, this step will be effective from June 25. From this date, SMS notifications will be pushed only for transactions above Rs 100 (for money sent/paid) and above Rs 500 (for money received). This decision has been taken because of the huge cost of sending bulk messages. To pay this cost, the banks have to spend a few crores of rupees daily, given the high volume of UPI transactions, which average around Rs 40 crore per day.
The bank added that email alerts for all transactions will continue to be delivered. The private lender reiterated that customers should update their primary email to receive all notifications. According to the bank, this decision is based on feedback on low-value transactions. HDFC said that the apps, through which the UPI transaction is carried out, sends an alert as well.
UPI transaction count increased
The UPI was introduced in India on April 11, 2016 by Dr Raghuram G Rajan, Governor, RBI at Mumbai. On a year-on-year basis, the UPI transaction count has increased by 50 percent. In 2023, the UPI transactions increased by almost 60 percent to reach a record 11,768 crore. As per the latest data from the National Payments Corporation of India (NPCI), the number of the UPI transactions has reached 1,330 crore in April. Three prominent UPI applications are the Walmart-owned PhonePe, Google Pay and Paytm. They have continued their dominance in India’s UPI payments space, together processing 94 percent of payments in March 2023. According to data from the National Payments Corporation of India (NPCI), the top three apps accounted for nearly 96 percent of all UPI transactions by value.
The average ticket size (ATS) of UPI transactions has also declined by 8 percent from Rs 1648 to Rs 1515. Average ticket size is the average amount a customer or party spends in one visit.
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