Digital payments giant PhonePe has introduced a new wallet maintenance policy under which users with inactive PhonePe Wallets may be charged a quarterly fee. The move is aimed at maintaining dormant wallet accounts and supporting ongoing platform operations.
PhonePe Introduces Inactivity Fee for Dormant Wallets
Under the revised policy, any PhonePe Wallet that does not record a financial transaction for 365 consecutive days will be classified as an "inactive wallet." Once a wallet is marked inactive, PhonePe will levy a maintenance fee of ₹100 per quarter, inclusive of GST.
The company clarified that only transactions made directly through the PhonePe Wallet will count as wallet activity.
Which Activities Will Not Keep Your Wallet Active?
PhonePe has specified that several commonly used services will not be considered wallet transactions for determining wallet activity. These include:
- UPI payments linked to a bank account
- Mobile and DTH recharges
- Utility bill payments
- Credit card bill payments
- Insurance premium payments
- Loan repayments
- Wallet KYC updates
- Simply logging into the PhonePe app
To keep the wallet active, users must complete at least one transaction using the PhonePe Wallet itself within a 365-day period.
How Users Can Avoid the ₹100 Charge
Before applying the maintenance fee, PhonePe will send multiple notifications to users over a 15-day period. During this notice window, users can reactivate their wallet by carrying out a wallet transaction.
If a wallet transaction is completed within the notification period, the wallet status will return to active, and no maintenance fee will be charged.
How Will the Fee Be Deducted?
The inactivity fee will be deducted directly from the wallet balance.
- If the wallet balance exceeds ₹100, the full fee will be deducted.
- If the balance is less than ₹100, PhonePe will deduct the available amount and reduce the balance to zero.
- Wallet balances will not go into negative territory.
Why Is PhonePe Charging This Fee?
According to PhonePe, the maintenance charge is intended to cover the costs associated with platform upkeep, service improvements, security updates, and operational maintenance of inactive wallet accounts.
The company emphasized that the fee applies only to wallets that remain inactive for one year and that users will receive advance notice before any deduction is made.
What PhonePe Users Should Do
Users who wish to avoid the quarterly inactivity fee should ensure they make at least one transaction using their PhonePe Wallet every 12 months. Even a small wallet transaction can help maintain active status and prevent the ₹100 maintenance charge.
The policy aligns with similar dormant wallet management practices adopted by several digital wallet and fintech service providers in recent years.