HDFC Bank to stop SMS alerts for Low-Value UPI transactions, email notifications to continue

Private lender HDFC Bank has informed customers that effective June 25, it will stop sending SMS alerts for any UPI spend below ₹100 or receipt of money less than ₹500.

The bank added, "Email alerts for all transactions will continue to be delivered." It reiterated that customers should update their primary email to receive all notifications. 

The bank said the decision is based on feedback on low-value transactions, as the apps through which the UPI transaction is carried out also send an alert.

The average ticket size for UPI transactions has gradually been falling over the years, down to 8 per cent from ₹1,648 in H2 2022 to ₹1,515 in H2 2023. This suggests that UPI is being used for smaller or micro-transactions.

According to the Worldline India report, PhonePe, Google Pay, and Paytm are the three dominant UPI apps in India in terms of transaction volume and value.

Transactions through the unified payments interface (UPI) platform crossed the 100 billion mark in the calendar year 2023, closing at around 118 billion, per the data shared by the National Payments Corporation of India (NPCI).

HDFC PIXEL Play

In addition to this development, HDFC Bank has launched ‘PIXEL’ credit cards billed as fully digital offerings. PIXEL comes in two versions: ‘PIXEL Play’ and ‘PIXEL Go’. While banks already allow electronic versions of physical credit cards enabling UPI and digital transactions, HDFC’s PIXEL Play and PIXEL Go are entirely digital offerings.

The customer will be onboarded for the digital credit cards through HDFC Bank’s PayZapp App and will then receive an instant digital credit card. Using the app, customers can manage their credit cards and access features such as card controls, rewards, EMI (Equated Monthly Instalments) dashboards, statements, and notifications.

Since the card is 100% digital, customers can use it only through the app. The ‘PIXEL Play’ card is available for salaried persons between 21 and 60 years of age with a monthly income of ₹25,000. For the self-employed, the card is available for those between 21 and 65 years of age with an annual taxable income of ₹6 lakh.