After facing backlash online, PhonePe explains its Rs 100 Inactive Wallet Fee

Just a few days back, various users shared on social media platforms that they received alerts from PhonePe that if their PhonePe Wallet is inactive for 12 months, they will be charged a Rs 100 inactive fee every quarter (deducted via Wallet balance). Well, this inactive fee received a lot of criticism from users, as users suspected that charges could be recovered from their linked bank accounts or through a UPI transaction if the wallet balance is insufficient. Users talked about considering another payment app.

After facing this backlash, PhonePe has decided to clear the misunderstanding over this inactivity fee.

Reportedly, the company has clarified that the inactivity fee only applies to the Phone Wallet (prepaid payment instrument), which operates separately from a user’s linked bank account. Also, if a user’s Wallet balance is zero, no amount will be recovered from your bank account or UPI. Apart from this, wallet balances will also not become negative due to the inactivity charges.

A customer may continue using PhonePe regularly for QR code payments, bill payments, and money transfers through UPI while their wallet remains inactive for months or years. But they still receive inactivity notifications if their wallet has remained unattended for an extended period.

Users receive a 15-day notice before any fee deduction, which gives them time to reactivate, withdraw funds or close the wallet. It is said that inactivity or maintenance charges are levied on dormant prepaid payment instruments to cover compliance and operational requirements.

Via.