PhonePe users may face Rs 100 quarterly fee on inactive wallets: Report
Follow UsInactive PhonePe wallets may face a Rs 100 fee every quarter after one year of no use.
The charge applies only to wallet balances, not UPI payments from bank accounts.
Users online have questioned the policy after receiving inactivity alerts.
PhonePe, one of India’s leading digital payment apps, is being called out online as the users discover that they’ll be charged for inactive wallets. Many customers shared screenshots of messages from the company urging them to recharge their PhonePe wallet or face a maintenance fee. The issue has triggered online backlash, with users questioning the charge and its communication. Although the fee is not new and is outlined in PhonePe’s wallet policy, several users say they were unaware of it until receiving recent alerts. Here is everything you need to know about the inactive wallets on PhonePe, the inactivity fees and what it could mean for you.
SurveyAccording to information available on PhonePe’s help pages, a wallet is considered inactive if it has not been used for 365 consecutive days. Once a wallet enters the inactive category, the company sends a notice period to the user before applying an inactivity maintenance fee. The inactivity charge is Rs 100 per quarter and will be automatically debited from your wallet only when there are enough funds in your wallet.
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The issue gained attention after some users shared screenshots on X who were receiving notification messages through PhonePe. In these messages, users were reportedly informed that they should recharge or use their wallet to avoid inactivity-related charges. The screenshots quickly spread online, triggering discussions about whether such a fee is fair for customers who rarely use digital wallets.
Well-known tipster Abhishek Yadav was one of the persons who received the message from PhonePe. He shared the SMS online via its official X handle and quoted, ‘Seriously, what is this, PhonePe?’
He further added ‘PhonePe has started warning users that inactive wallets will be charged Rs 100 every quarter after 12 months of inactivity. Most people don’t even use PhonePe Wallet. They use UPI directly from their bank account and may not even know an account. And now some users say they need to complete full KYC just to close it. Charging users for a feature they never use while making it harder to opt out is exactly why people are angry. No impact on UPI, but this is a terrible look.’
⚠️ Seriously, what is this, PhonePe?
— Abhishek Yadav (@yabhishekhd) June 17, 2026
PhonePe has started warning users that inactive wallets will be charged ₹100 every quarter after 12 months of inactivity.
Most people don't even use PhonePe Wallet. They use UPI directly from their bank account and may not even know a… pic.twitter.com/SZHFcgASng
Reddit users also joined the conversation, with some advising others to empty their wallet balances if they no longer planned to use the service. Others questioned why a maintenance fee should apply when a wallet remains unused. The posts generated hundreds of reactions and helped bring wider attention to the policy.
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According to the terms published by PhonePe, the penalty only affects the balance in the wallet and not the UPI transactions that are done from bank accounts. This was one of the main reasons why there was so much discussion on the topic, since people were worried about the possibility of the charge being imposed on even inactive UPI accounts.
