PhonePe has updated its wallet policy, introducing a ₹100 inactivity fee for accounts with no transactions for 365 days
A PhonePe wallet will be inactive after one year without transactions, while UPI payments from bank accounts won’t count as activity
PhonePe said the ₹100 fee will apply after one year of inactivity, with users getting 15 days prior notice before deduction
Digital payments platform PhonePe has updated its wallet policy and said users may be charged a maintenance fee if their wallet remains unused for a long period.
The company has introduced an inactivity fee of ₹100 for wallets that see no transactions for 365 days.
According to the updated terms, a PhonePe wallet will be marked inactive if no wallet-based transactions are made for one year. The company clarified that regular UPI payments from bank accounts will not be counted as wallet activity.
1 June 2026
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Inactivity Fee Rules Explained
PhonePe stated that the ₹100 charge will take effect only after a year of no activity. Users will be informed 15 days in advance before the deduction occurs from their wallet balance.
If there is enough balance, the ₹100 fee will be deducted automatically. If the balance is less than ₹100, whatever amount is left will be taken, and the wallet will be reduced to zero instead of going negative.
To avoid the charge, users will need to make at least one wallet transaction in a year to keep the account active.
At the same time, the move has sparked discussion online, with some users questioning the need for a fee on a service they rarely use. Some users also said many people mainly rely on UPI payments directly from bank accounts instead of keeping money in wallets.
Similar Charges in Fintech
Inactivity-based charges are not new in the digital payments sector. Several fintech platforms have introduced similar policies for dormant wallets over the years.
Earlier, Airtel Payments Bank also charged fees on inactive wallets, while MobiKwik introduced similar charges in 2021 for unused accounts.
PhonePe’s latest move follows similar steps taken by other fintech companies to charge for inactive wallets and manage costs.
