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If you use PhonePe for digital payments, this news is crucial for you. In a significant policy change, the company has decided to levy an 'Inactivity Charge.' Under the new rules, if your PhonePe wallet remains inactive for an extended period, you may have to pay a fee.

PhonePe has also addressed the confusion among its customers by clarifying the difference between UPI and the wallet, as well as detailing the applicable penalty for the wallet. Let’s look at the answers to these questions.

What did PhonePe say?
According to the new guidelines issued by PhonePe, wallets that have not been used for the past year (12 months) will be classified as inactive. Users with such dormant (inactive) wallets will be required to pay an inactivity fee of ₹100 per quarter. However, if you use the wallet even once within three months, it will be considered active.

What happens if there is no money in the wallet?
Many users are wondering if money will still be deducted if their PhonePe wallet balance is zero. According to the company, this charge is deducted solely from the wallet balance. If there are no funds in your wallet, your balance will not go into the negative, nor will any money be deducted from your linked bank account.

What is the difference between UPI and the Wallet?
Following this alert from PhonePe, many people are confused about the distinction between UPI and the wallet. PhonePe has clarified the difference between the two:

PhonePe Wallet: This is a digital wallet where you must first load money from your bank account. It does not require a PIN for transactions and operates directly through the app. The new rules apply only to this wallet. UPI (Unified Payments Interface): Through this, money is deducted directly from your bank account and transferred straight to the recipient's bank account. A UPI PIN is required for every transaction. UPI services will remain fully active, and there are no charges for inactivity.

To whom has the company sent alerts?
The company has started sending alerts via notifications and emails to all customers whose wallets have remained inactive for a long period. If you wish to avoid this ₹100 charge, simply perform a small transaction (such as a mobile recharge or a merchant payment) using your PhonePe wallet before it is too late. Doing so will reactivate your wallet and save you from the penalty.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.