PhonePe to start charging a Rs 100 quarterly inactivity fee on dormant wallets
PhonePe is currently facing backlash online after users surfaced terms showing an inactivity maintenance fee of Rs 100 per quarter for dormant wallets. The company’s wallet help pages say a wallet becomes inactive after 365 days without wallet use, and users then get a notice period before the fee can be deducted. Some users on X and reddit have shared that they’ve received SMS through PhonePe urging them to recharge lest they face the maintenance fee. Find the complete story below.
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Why users are upset
The reaction online has been sharp because many users did not expect an inactive wallet to attract a recurring fee. The fee also appears to have caught attention because it is being discussed as a quarterly charge, which makes it feel more punitive than a one-time penalty.
⚠️ Seriously, what is this, PhonePe?
PhonePe has started warning users that inactive wallets will be charged ₹100 every quarter after 12 months of inactivity.
Most people don’t even use PhonePe Wallet. They use UPI directly from their bank account and may not even know a… pic.twitter.com/SZHFcgASng
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— Abhishek Yadav (@yabhishekhd) June 17, 2026
There’s only really one option left for anyone with money sitting in a PhonePe Wallet. Check whether the wallet has been inactive for a year or longer and withdraw or use the balance if needed. Users who do not want the fee may need to complete a wallet transaction or reactivate the wallet before the notice period ends.
What PhonePe says
On PhonePe’s wallet terms and conditions webpage, it says the fee applies only when a wallet has seen no financial transactions for a year and that normal app use does not count as wallet activity. The company says it will notify users multiple times during a 15-day period before charging the fee, and users can avoid it by making a wallet transaction that reactivates the account.
The terms also say PhonePe may deduct the fee from the wallet balance, and if the balance is lower than Rs 100, it will take the full balance and keep the wallet at zero rather than negative. PhonePe also reserves the right to change its fee policy and introduce new charges for existing services.
Has this happened before?
Yes, PhonePe is not the first fintech player to charge for inactivity. In 2021, MobiKwik said it would levy a “wallet maintenance charge” of Rs 100 to Rs 140 a year on dormant users, with the fee deducted from the existing wallet balance after a notice period. Even Airtel Payments Bank also lists a wallet maintenance fee for inactive wallets in its charges schedule, showing that dormancy penalties have slowly become part of the digital wallet business model.
These fees sit on top of an ecosystem where UPI has already reduced day-to-day reliance on wallets, leaving many accounts with small, forgotten balances. From the companies’ side, the argument is that maintaining these wallets still costs money in infrastructure, compliance and security, and inactivity fees help cover that.
But due to PhonePe’s sheer size, the pushback is just as loud, and the Rs 100-per-quarter wording makes the charge feel more aggressive than earlier annual fees, especially to users who assumed wallets would stay free indefinitely.
