PhonePe may charge Rs 100 fee: Here's how to avoid it

If your phone carries the PhonePe app, then there is something that you must know. The digital payment platform has updated its wallet policy and may now charge some users with a maintenance fee of Rs 100. Before you panic, there is a catch. The fee does not apply to everyone. It is only meant for those who have left their PhonePe Wallet unused for a long period of time. Also Read: How to use one UPI account on two phones without changing bank accounts

Here is everything you need to know about the new charge and how you can avoid paying it.  Also Read: Parents can now give pocket money digitally through Paytm UPI; Here’s how

What is the new PhonePe wallet fee? 

PhonePe has introduced what it calls a Wallet Inactivity Maintenance Fee. Under the updated policy, users who do not use their PhonePe Wallet for 365 consecutive days may be marked as inactive. Once the wallet becomes inactive, PhonePe can charge a maintenance fee of Rs 100, including GST, every quarter. Also Read: Meta Ray-Ban Display glasses can now type messages without touching a phone

The company says the fee is meant to support platform maintenance, updates, and improvements.

So, who will be affected?

The important thing to understand is that this fee is only linked to the PhonePe Wallet and not regular UPI payments. Many users use PhonePe only as a UPI app linked directly to their bank account. If you never use the wallet feature, you may not even have any wallet balance to worry about. 

However, if you have previously added money to your PhonePe Wallet and have left it unused for a year, the inactivity policy could apply. 

THINGS to know while using PhonePe

It is important to know what does not count as wallet activity. This is where many users could get confused. Simply opening the PhonePe app does not count as activity. Making UPI payments through your bank account also does not count. Even activities such as bill payments, recharges, insurance purchases, loan-related services, or completing KYC are not considered wallet transactions for this purpose. 

To keep the wallet active, you need to make a transaction directly using the PhonePe Wallet balance. 

How to avoid the Rs 100 fee

The good news is that avoiding the charge is quite simple. Just make at least one transaction using your PhonePe Wallet within a 365-day period. Any wallet-based transaction should keep the wallet active.

PhonePe will also send users a 15-day notice before deducting the inactivity fee. If you receive such a notification, simply use your wallet during the notice period and the wallet will become active again.

What happens if you ignore the notice? 

If your wallet has more than Rs 100 balance, PhonePe can deduct the full maintenance charge. If the balance is lower than Rs 100, the company will only deduct the available amount and reduce the wallet balance to zero. The wallet will not go into negative balance.

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Not the first company to do this. While the policy has sparked discussions online, PhonePe is not the first fintech company to introduce inactivity charges. Several digital wallet providers have previously introduced similar maintenance fees for dormant wallets. The idea is to manage inactive accounts that remain unused for long periods. For most users, the easiest way to avoid the charge is simple: use your PhonePe Wallet at least once a year or withdraw any unused balance if you no longer need the wallet feature.