PhonePe has updated its Wallet and eGV terms to introduce a new inactivity fee for users who do not transact through their wallet for an extended period. As per the revised policy, any PhonePe Wallet that does not record a financial transaction for 365 consecutive days will be classified as inactive. Once a wallet reaches this inactive status, PhonePe may charge a maintenance fee of Rs 100 every quarter, inclusive of GST.
Why PhonePe Is Introducing the Fee
Explaining the reasoning behind the move, the company said the fee is meant to help cover the cost of ongoing platform upgrades, bug fixes and overall improvements aimed at enhancing the user experience. In simple terms, PhonePe is positioning this charge as a way to fund the continuous maintenance of its app and services rather than as a penalty.
PhonePe has been clear that not all app usage will help a wallet avoid inactive status. Merely opening or logging into the app will not be treated as wallet activity. Similarly, several common types of transactions will also not count toward keeping the wallet active. These include UPI payments, mobile or DTH recharges, bill payments, credit card bill payments, loan related transactions, insurance payments and KYC updates. Since these are non wallet transactions, they will not stop a wallet from being marked inactive even if a user performs them regularly.
PhonePe has assured users that the inactivity fee will not be deducted without warning. Once a wallet is found to be inactive, the company will send multiple notifications to the user over a 15 day window before any fee is actually charged. These alerts are also expected to include clear instructions on how users can reactivate their wallet, making it easier for them to avoid the deduction if they choose to act in time.
According to PhonePe, users have a simple way to prevent the fee from being applied. If a user completes any genuine financial transaction through the PhonePe Wallet during the 15 day notice period, the wallet will be reclassified as active immediately, and no inactivity fee will be levied. This means the charge is entirely avoidable as long as users make at least one wallet specific transaction within a year.
In summary, PhonePe’s new policy puts the responsibility on users to actively use their wallet balance at least once a year through an actual financial transaction. While everyday actions like UPI payments or recharges will not help, a single wallet transaction within the 365 day window is enough to keep the account fee free.
