If you use PhonePe, this update is worth knowing.
The digital payments platform has introduced a new rule under which users with inactive PhonePe Wallets may have to pay a maintenance fee of ₹100 every quarter.
The announcement has triggered discussions among users, especially those who use PhonePe mainly for UPI payments and may not even realize they have an active wallet linked to their account.
When Will PhonePe Charge the ₹100 Fee?
According to the company’s updated policy, a PhonePe Wallet will be considered inactive if no transaction is made through the wallet for 365 consecutive days.
Once the wallet is classified as inactive, PhonePe can charge a maintenance fee of ₹100 per quarter, including GST.
However, there is an important point many users should understand.
Simply opening the app, making UPI payments, paying bills, recharging a mobile number, or completing KYC does not count as wallet activity.
To keep the wallet active, users must carry out a transaction directly through the PhonePe Wallet.
UPI Users Don’t Need to Worry
PhonePe has clarified that the new fee applies only to PhonePe Wallets.
If you use PhonePe only for UPI transactions linked directly to your bank account and do not maintain a wallet balance, this policy will not affect you.
The company has also stated that the fee will be deducted only from the wallet balance.
It will not be charged from your linked bank account.
If the wallet contains less than ₹100, only the available balance will be deducted.
The wallet balance will never go into negative.
PhonePe Will Give Advance Notice
Users will not be charged suddenly.
Before applying the maintenance fee, PhonePe says it will send multiple reminders during a 15-day notice period.
During this time, users can reactivate their wallets simply by making a wallet transaction.
Once the wallet becomes active again, the maintenance charge will not be applied.
Why Has PhonePe Introduced This Charge?
According to the company, the fee is meant to cover the costs of maintaining inactive wallets.
These expenses include system maintenance, security upgrades, compliance requirements and platform improvements.
PhonePe says similar policies are already followed by some financial institutions and prepaid payment service providers for dormant accounts.
Users React to the New Policy
The announcement has received mixed reactions online.
Some users have questioned whether it is fair to charge a fee on wallets that they rarely use.
Others have suggested closing unused wallets to avoid future deductions.
At the same time, many users are asking for clearer information on wallet management, inactivity rules and account closure procedures.
What Should Users Do Now?
If you have ever activated a PhonePe Wallet, it may be a good idea to check whether it is still active and whether any balance is lying unused.
Users who want to avoid the maintenance charge can either make a wallet transaction periodically or review whether they still need the wallet service.
Key Points at a Glance
PhonePe will charge ₹100 per quarter on inactive wallets.
A wallet becomes inactive after 365 days without a wallet transaction.
UPI payments through linked bank accounts are not affected.
Bill payments, recharges and app logins do not count as wallet activity.
The fee will be deducted only from the wallet balance.
Users will receive advance notifications before any charge is applied.
Making a wallet transaction during the notice period can prevent the fee.
