The company announced the updated guidelines in a recent blog post, indicating that users who refrain from making any transactions via the PhonePe Wallet for 365 consecutive days will be classified as “inactive” and subjected to a ‘Wallet Inactivity Maintenance Fee’ of ₹100 (inclusive of GST) every quarter.
It was clarified by the company that simply accessing the PhonePe app or executing payments through UPI linked to a bank account will not be recognized as wallet activity.
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“User actions like logging into the PhonePe application, performing UPI transactions, conducting on-app category payments/applications (such as recharge, bill payments, credit cards, loans, and insurance), or submitting KYC for the wallet do not qualify as wallet activity when determining the PhonePe Wallet’s ‘Inactive’ status and duration,” the blog post outlined.
To maintain an active wallet, users are required to conduct a transaction using their PhonePe wallet directly.
According to PhonePe, users will receive a 15-day notification prior to the deduction of the inactivity fee.
Users can avert the charge by carrying out a wallet transaction during this notice period, after which the wallet will be reinstated as active.
If there are sufficient funds in the wallet, ₹100 will be automatically deducted as a Wallet Inactivity Maintenance Fee. However, if the balance is below ₹100, only the available amount will be deducted, bringing the balance to zero without incurring a negative balance.
As per PhonePe, this charge is essential for continuous platform updates, fixes, and feature enhancements aimed at enhancing user experience.
How to avoid the charges
PhonePe users can determine if they might be affected by reviewing their wallet activity. The inactivity fee applies specifically to wallets that have not executed a financial transaction for 365 continuous days.
To prevent incurring the charge, users should ensure they complete at least one transaction using their PhonePe wallet within the annual period.
Inactivity-related fees are not an entirely new concept in the digital payment sector. Various fintech companies have previously adopted similar strategies for dormant wallets. In 2021, Mobikwik initiated a wallet maintenance fee for users who were inactive.
Previously, Airtel Payments Bank also imposed maintenance fees on wallets that remained inactive for a specific duration before transitioning to an annual maintenance fee model.
(Edited by : Gareema Bangad)
First Published: Jun 19, 2026 11:58 AM IST
