PhonePe faces backlash online after warning users about Rs 100 wallet inactivity fee

Since yesterday, many users have reported online that they are receiving alerts from PhonePe that if their PhonePe Wallet is inactive, they will be charged a Rs 100 inactivity fee soon.

It is revealed that inactive wallets will be charged Rs 100 every quarter (deducted directly from your available Wallet balance) after 12 months of inactivity. If the wallet balance is less than the Wallet Maintenance Fee, then the entire wallet balance will be debited, and the wallet balance will become zero (Wallet balance will never be negative). The tricky part is that if a user tries to close a wallet, they need to activate it and to activate the wallet, they need to go through KYC (PAN and Aadhar).

This warning message is receiving a lot of criticism online, with many users sharing memes or suggesting switching apps. The only resolution to escape the inactivity fee is either to make a wallet transaction, withdraw funds or close the wallet entirely.

As per PhonePe’s Wallet terms and conditions, the company notifies users multiple times 15 days before charging the inactivity fee.

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