OTP for payment
SMS{#var#} is your OTP for a payment of Rs {#var#} at {#var#}. Valid for {#var#} minutes. Never share it. -{#var#}State the amount and merchant so customers can spot fraud.
Messaging for banks, NBFCs and fintechs in India
Banks, NBFCs and fintechs use messaging for OTPs, transaction alerts, EMI and due-date reminders, KYC follow-ups and collections. The work is trust-critical: messages must arrive fast, match approved templates exactly, and never look like the phishing texts customers have learned to ignore.
In this sector, a clear message is a security feature. Customers are told to distrust links and unknown senders, so the best BFSI messages are short, name the institution, and give the customer a way to verify them.
C
CONNEX
SMS · Transactional
Your EMI of Rs 8,450 for loan ending 4471 is due on 05 Oct. Keep your account funded to avoid a late fee. -Kiran Finance
9:00 AM
Rs 8,450 received against loan ending 4471. Thank you. -Kiran Finance
5 Oct, 11:20 AM
- Priority
- OTP and alerts on dedicated transactional routes
- Reminders
- SMS and WhatsApp, with IVR for follow-up
- Compliance
- DLT, plus your RBI, SEBI or IRDAI guidelines
- Security
- No sensitive details in the message body
Messages that a lending or banking customer should get
- 1
Onboarding and KYC
Confirm the application, ask for missing documents and nudge incomplete KYC. Keep every message short and give one clear next step.
- 2
Authentication
Send OTPs for login, payments and profile changes on a dedicated route, with voice or WhatsApp as fallback for the moments SMS is slow.
- 3
Transaction and account alerts
Debit, credit and balance alerts must arrive quickly and carry only what the customer needs, such as amount, last digits and reference.
- 4
Due-date and EMI reminders
Remind three or so days ahead, again on the due date, and confirm on receipt. Tone should stay respectful, especially after a missed date.
- 5
Collections follow-up
Move from message to WhatsApp to an IVR or agent call as an account ages, and record every contact for audit.
Which channel does which job
| Channel | Use it for | Why |
|---|---|---|
| SMS | OTP, transaction alerts, EMI and due-date reminders | Universal reach and speed on a transactional route. |
| Statements, KYC document requests, service queries | Utility templates carry PDFs and buttons. Customers can reply in the same thread. | |
| Voice / IVR | Collections, verification calls, balance enquiries | Handles volume, records calls and escalates to an agent when needed. |
| RCS | Verified sender for Android users | A named, verified brand helps customers trust a message. Use with SMS fallback. |
Message templates worth starting from
Variables are written as {#var#}, the way they appear on a DLT template. Adapt the wording to your brand, then register it.
EMI reminder
SMSDear {#var#}, your EMI of Rs {#var#} for loan ending {#var#} is due on {#var#}. Please keep sufficient balance. -{#var#}Show only the last four digits. Avoid links unless whitelisted.
KYC follow-up
WhatsAppHi {{1}}, your KYC is pending for {{2}}. Please upload {{3}} to continue.
[Upload now] [Need help]Utility template. One task per message.
What usually goes wrong
Too much information in the SMS
Full account numbers and balances in a text are a risk if the phone is lost or the message is forwarded. Show the last four digits only.
Links from unfamiliar domains
Customers are trained to avoid links. Use your own whitelisted domain and tell them in the message that you will never ask for an OTP.
Aggressive collections tone
Threatening language drives complaints and escalations. A calm reminder and an easy way to pay recovers more.
No audit trail
When a customer disputes a reminder, you need to show what was sent, when and on which channel. Keep delivery logs for the required period.
What a regulated sender should have ready
- DLT entity, headers and templates approved for transactional, service and promotional use.
- OTP route separated from campaign traffic, with fallback channels.
- Consent and opt-out records stored and searchable.
- Templates reviewed by your compliance team against RBI, SEBI or IRDAI norms.
- Sensitive data masked in every message.
- Delivery logs retained and exportable for audits and disputes.
Questions we get asked
Which SMS templates does a bank or NBFC need on DLT?
Typically OTP, transaction alert, EMI or due-date reminder, service and KYC templates, each under the correct category. Promotional offers use separate promotional templates.
Can we send EMI reminders on WhatsApp?
Yes, using approved utility templates to customers who have opted in. WhatsApp is useful for reminders that come with a payment link or receipt PDF.
How do we avoid our messages being mistaken for phishing?
Use a recognisable header, name the institution in the text, show only masked account details, use your own whitelisted domain and state clearly that you will never ask for an OTP or password.
Can we use IVR for collections?
Yes. IVR can deliver reminders at scale, take payment intent, record calls and hand over to an agent. Follow your regulator’s rules on contact timing and conduct.
Are OTPs affected by DND?
Transactional messages such as OTPs and alerts are not restricted by DND, provided they use approved templates and carry no promotional content.
Talk to us about your compliance and delivery needs
Tell us the volume, the message types and your regulator. We will map the templates, routes and audit logs you need.