PhonePe, one of India’s largest digital payments platforms, has come under scrutiny on social media after users discovered that inactive wallets may attract maintenance charges.
The issue surfaced after several customers shared screenshots of notifications allegedly sent by the company, urging them to use or recharge their PhonePe wallets to avoid inactivity-related fees. The messages triggered widespread discussion online, with many users expressing surprise and questioning the charge. While the fee is not a new policy and is already mentioned in PhonePe’s wallet terms and conditions, several customers claimed they were unaware of it until receiving the recent alerts.
According to information available on PhonePe’s help pages, a wallet is classified as inactive if it remains unused for 365 consecutive days. Once a wallet becomes inactive, the company notifies the user before applying an inactivity maintenance charge.
Under the policy, an inactivity fee of ₹100 per quarter may be deducted from the wallet balance, provided sufficient funds are available in the account. The charge is applied only to the wallet balance and not to bank accounts linked through UPI.
The issue gained momentum after users posted screenshots of the notifications on social media platform X. Many users said they had received messages warning them to carry out a transaction or add funds to their wallets to avoid the maintenance fee. The posts quickly went viral, sparking debate over the fairness of imposing charges on wallets that remain unused.
The discussion soon spread to online forums, where several users advised others to withdraw or utilise any remaining wallet balance if they no longer intended to use the service. Others questioned the rationale behind charging customers for inactivity, arguing that dormant wallets should not attract maintenance costs.
PhonePe’s policy, however, clarifies that the fee applies only to prepaid wallet balances and has no impact on UPI transactions conducted directly through linked bank accounts. This distinction became a key point of discussion, as many users initially feared that inactive UPI accounts could also be subject to similar charges.
The controversy has once again highlighted the importance of users reviewing the terms and conditions associated with digital payment services, particularly those related to wallet usage and account maintenance.
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