Users inactive for 365 days may face ₹100 quarterly maintenance charge.
New Delhi, June 20, 2026: Digital payments platform PhonePe has introduced a new policy under which users with inactive wallets may be required to pay a maintenance fee. The move is aimed at managing dormant wallet accounts and encouraging active wallet usage.
According to the updated policy, if a user does not perform any financial transaction through their PhonePe Wallet for 365 consecutive days, the wallet will be classified as inactive. Once marked inactive, a maintenance charge of ₹100 per quarter (including GST) will be levied.
UPI Transactions Won’t Count
PhonePe has clarified that simply opening the app or making payments through a linked bank account via UPI will not be considered wallet activity.
The company stated that the following actions will not qualify as wallet transactions:
- UPI payments through linked bank accounts
- App logins
- Mobile recharges and bill payments made via non-wallet methods
- Credit card, loan or insurance payments
- Wallet KYC submissions
- Any other non-wallet transactions
To keep the wallet active, users must make at least one transaction directly using their PhonePe Wallet balance.
Advance Notice Before Fee Deduction
PhonePe said users will receive a notification 15 days before the inactivity fee is deducted. During this notice period, users can avoid the charge by making a wallet transaction, which will reactivate the wallet.
How the Fee Will Be Charged
If the wallet contains ₹100 or more, the company will deduct the full maintenance fee. If the balance is less than ₹100, only the available amount will be deducted, and the wallet balance will be reduced to zero. No negative balance will be created.
How to Avoid the Charge
Experts suggest that users make at least one transaction through their PhonePe Wallet every year to prevent the account from becoming inactive. A single wallet transaction within 365 days is sufficient to maintain active status.
The policy follows a trend seen across the digital payments industry. Similar wallet maintenance charges were introduced by other fintech companies in the past for dormant accounts.
