PhonePe to charge ₹100 quarterly fee on inactive wallets
What's the story
PhonePe, a leading digital payment and financial services company, has updated its wallet policy. The new guidelines state that if you don't use your PhonePe Wallet for 365 consecutive days, it will be considered inactive. An inactivity maintenance fee of ₹100 (including GST) would then be levied on the wallet every quarter. The fee is aimed at supporting continuous platform updates and improvements to enhance user experience.
Deduction details
Fee will be deducted after a 15-day grace period
When a wallet is marked inactive, PhonePe will notify the user multiple times in a 15-day grace period before deducting the inactivity fee. The company has clarified that merely logging into the app or making UPI transactions won't count as wallet activity. If you perform a financial transaction using your wallet during this period, it will be marked 'Active,' and no fee will be charged.
Balance impact
Wallet balance won't go negative, assures PhonePe
The inactivity maintenance fee will be deducted directly from the existing balance of your PhonePe Wallet. If the balance is less than ₹100, the entire amount will be debited and reduced to zero. However, PhonePe has assured that wallet balances won't go negative. The company said this charge is necessary to support ongoing platform updates, fixes, and feature enhancements for a better user experience.
Fee avoidance
How to avoid inactivity maintenance fee?
To avoid the inactivity maintenance fee, PhonePe users should check their wallet activity. The fee only applies to wallets that haven't had a financial transaction for 365 consecutive days. To keep your wallet active and avoid this charge, make sure you complete at least one transaction through your PhonePe Wallet within that period.