PhonePe Wallet Users Alert! Rs. 100 Quarterly Fee on Inactive Wallets After 1 Year; Check How to Avoid

PhonePe recently announced a new maintenance fee for users who keep their PhonePe Wallet inactive for a long period of time. Under the revised policy, the digital payments platform will levy a Rs.100 quarterly inactivity fee including plus applicable GST on wallets that stay inactive for 365 consecutive days.

It is similar to the dormant account maintenance charges which the banks imposed. It does not affect regular UPI transactions made directly from a linked bank account.

What Is the New PhonePe Wallet Inactivity Fee?

According to PhonePe's updated wallet policy, users whose wallets remain inactive for 12 consecutive months will be charged Rs. 100 every quarter, along with applicable GST. The fee is being charged to cover the operational and compliance costs for maintaining inactive prepaid wallet accounts.

Who Will Be Affected?

The new charge applies only to users who have a PhonePe Wallet with a balance and those who do not perform any wallet transaction for 365 consecutive days.

How to Avoid the Rs. 100 Quarterly Fee

Users can avoid the inactivity charges by taking any one of the following steps before completing 365 days of inactivity:

1. Perform at least one transaction using the PhonePe Wallet during the 12-month period. This resets the inactivity clock for another year.

2. If you no longer use the wallet, transfer or spend the remaining balance so that the wallet balance becomes zero. Since the fee is deducted only when sufficient balance is available, maintaining a zero balance prevents the charge.

3. Users who no longer intend to use the PhonePe Wallet can permanently deactivate or close it through the app settings, ensuring no future maintenance charges apply.

What Counts as Wallet Activity?

If you receive a reminder that your wallet is approaching inactivity, you don't need to make a large payment. Simply adding a small amount such as Rs. 10 to Rs. 50 to the wallet and making a wallet-based purchase or payment is enough to reset the 12-month inactivity period.

For most users who rely only on UPI payments through their bank accounts, the new rule will have no impact. However, users who maintain funds in their PhonePe Wallet without using them should review their wallet activity and take the necessary steps to avoid the quarterly Rs. 100 inactivity fee.