PhonePe has clarified that inactivity fees tied to dormant PhonePe Wallets apply only to the wallet itself, which is a prepaid payment instrument (PPI). According to the company, the inactivity charges do not impact users’ linked bank accounts or transactions made through the Unified Payments Interface (UPI).
The clarification follows user concerns about how inactivity-related notifications and potential charges may affect their funds. PhonePe says wallet balances operate under separate rules from UPI payments, where money is debited directly from a user’s bank account rather than from the wallet balance.
Across reports, PhonePe maintains that no deductions are made from linked bank accounts and that UPI transactions are not affected by the wallet inactivity fees. The company’s statements emphasize the technical and regulatory separation between prepaid wallet balances and UPI-linked banking rails, indicating that the inactivity policy is limited to the PhonePe Wallet balance only.
