If you use PhonePe for online payments, this update is important for you. The company has reportedly revised its wallet usage policy, and users who do not use their wallet for a long period may soon be charged an inactivity maintenance fee.

This rule is applicable only to wallet usage and not regular UPI transactions.

What Is the New PhonePe Rule?

As per the updated policy, if a user does not perform any wallet transaction for 365 days (1 year), the wallet may be marked as inactive.

In such cases, an inactivity maintenance fee of ₹100 may be charged from the wallet balance.

Who Will Be Affected?

The fee will apply only to users who:

• Have a PhonePe wallet

• Do not use wallet balance for 365 days

• Do not perform any wallet-based transaction

Important Point: UPI Transactions Do NOT Count

Many users assume that regular UPI payments keep the wallet active, but that is not the case.

• UPI payments from bank accounts ❌ do not count

• Wallet transactions only ✔ count for activity

So, users must specifically use wallet balance to avoid inactivity charges.

How the ₹100 Fee Will Be Charged

• Users will receive a 15-day prior notice

• If wallet balance is sufficient, ₹100 will be deducted

• If balance is less than ₹100, the remaining amount will be deducted

• Wallet balance may become zero but will not go negative

Why This Rule Is Being Introduced

According to reports, this step is aimed at:

• Reducing inactive wallet accounts

• Streamlining digital wallet usage

• Improving system efficiency

Industry experts also note that inactivity fees are not new in digital payments. Similar policies were introduced earlier by other platforms such as MobiKwik.

What Users Should Do

To avoid charges:

• Use wallet balance at least once within 12 months

• Keep track of wallet activity

• Prefer occasional wallet-based payments

Conclusion

The new PhonePe wallet rule highlights the importance of regular wallet usage. While normal UPI transactions will not protect users from inactivity charges, a simple wallet transaction once a year can help avoid the ₹100 fee.

Users of PhonePe are advised to stay updated with policy changes to avoid unnecessary deductions.