PhonePe: Big news for PhonePe users. The company has updated its wallet policy. If a user does not utilize their wallet for an extended period, they will incur an inactive maintenance charge. This was detailed in a blog post.
Inactive fee of Rs 100 every quarter
According to PhonePe’s new policy, if a user refrains from making any financial transactions through their wallet for 365 consecutive days, their wallet will be categorized as inactive. Consequently, they will need to pay an inactive maintenance fee of Rs 100 (including GST) every quarter.
UPI transactions through bank accounts will not count
The company has made it clear that simply opening the PhonePe app or executing a payment from a bank account linked to UPI will not qualify as wallet activity. The blog post mentions, “Logging into the PhonePe application, UPI transactions, on-app category payments/applications (like recharges, bill payments, credit cards, loans, insurance) or any other non-wallet transactions or KYC submissions for the wallet will not be recognized as wallet activity.”
Transactions must be made through the wallet
PhonePe emphasizes that to keep the wallet active, users need to perform transactions directly through their PhonePe wallet. The company has assured that users will receive a notification before the inactivity fee is applied. A notice will be sent 15 days before the fee deduction. However, users can avoid this fee by making payments through the wallet during the notice period. Once they do this, the wallet will be considered active again.
How the company will deduct inactive fees?
If the wallet has enough funds, the company will automatically deduct the wallet inactivity maintenance fee of Rs 100. If the wallet balance is below Rs 100, only the available amount will be deducted, and the remaining balance will be brought down to zero without incurring a negative balance. Many users rely on the PhonePe wallet.
How to avoid inactive fees ?
Experts say that to avoid inactivity fees, users should ensure they make at least one transaction using their PhonePe wallet. Doing so once a year is sufficient. Digital payment companies have imposed similar charges in the past. In 2021, MobiKwik introduced a wallet maintenance charge for inactive users.