PhonePe Introduces New Rule: ₹100 Fee for Inactive Wallets!

PhonePe New Rule: Digital payment platform PhonePe has implemented a new rule regarding its wallet, under which a maintenance fee will be charged for wallets that remain unused for an extended period.

PhonePe New Rule: Nowadays, people frequently use digital payment methods, including apps like PhonePe and Paytm. While many users utilize the PhonePe Wallet, others do not. Significant news has now emerged regarding this: PhonePe has introduced a new rule where a maintenance fee will be levied on wallets that have not been used for a long time.

According to the company, if a user does not make any payments using the PhonePe Wallet for 365 days, the wallet will be deemed inactive, and a fee of ₹100 may be charged on a quarterly basis. PhonePe states that this fee is intended to cover wallet maintenance, platform updates, security measures, and the continuation of technical services. This decision by PhonePe has sparked dissatisfaction among users; many argue that since they use UPI directly for payments and do not utilize the wallet, imposing such a fee is unfair.

When is a wallet considered inactive?

According to the company, only financial transactions made using the PhonePe Wallet itself count as wallet activity. If no transactions occur via the wallet within 365 days, it will be classified as inactive. Simply opening the PhonePe app, making UPI payments, recharging mobile phones, paying bills, or using services like loans, insurance, etc., will not keep the wallet active. Even updating KYC details will not be considered sufficient to keep the wallet active.

How will the ₹100 fee be charged?

PhonePe will first issue warnings to the user by sending multiple notifications over a period of 15 days. If the user performs a transaction using the wallet during this time, the wallet will become active again, and no fee will be charged. However, if no activity occurs within the stipulated timeframe, the company will deduct a quarterly maintenance fee of ₹100 from the wallet balance. If the wallet balance is less than ₹100, the entire available amount will be deducted, bringing the balance to zero. The company has clarified that the wallet balance will never go into the negative.

Why are users expressing dissatisfaction?

Following the announcement of the new rule, many users raised questions on social media. Some argue that most people make UPI payments directly from their bank accounts rather than using the PhonePe wallet; therefore, imposing a fee for wallet inactivity is unjustified. Others have criticized the move, noting that they are being charged for a service they do not even use. It is worth noting, however, that such fees are not uncommon in the digital wallet industry. Previously, MobiKwik also announced maintenance charges for inactive wallets. Airtel Payments Bank had also introduced maintenance fees for inactive wallets, a policy that was later revised to an annual maintenance charge model.