economy

PhonePe clarifies: Wallet inactivity fees don't affect bank accounts or UPI

Published on: 20 Jun 2026, 04:55 PM

PhonePe has clarified that inactivity fees charged on dormant wallets do not impact users' linked bank accounts or UPI transactions. The clarification came after notifications sent to some customers caused confusion about how digital wallets work.

The fees apply only to the PhonePe Wallet, which is a prepaid payment instrument (PPI), and not to payments made through the Unified Payments Interface (UPI), where funds are debited directly from a bank account.

Many consumers mistakenly think their PhonePe account, UPI account, and PhonePe Wallet are the same. In reality, they operate independently and are subject to different rules.

A key concern is whether inactivity charges can be recovered from a bank account if the wallet balance is insufficient. PhonePe confirmed that no deductions would be made from linked bank accounts or through UPI, and wallet balances would not become negative.

Even users who actively use the PhonePe app for UPI payments may receive inactivity alerts, because wallet activity and UPI activity are tracked separately. A wallet can be classified as inactive even if the user frequently makes UPI transactions.

PhonePe said affected users are notified 15 days before any inactivity fee is deducted from the wallet balance, allowing time to reactivate the wallet, add funds, withdraw eligible balances, or close the wallet.

Reactivation typically requires only OTP verification and a wallet transaction, not necessarily a Full KYC upgrade.

Cashback credits are stored in a separate gift card balance, not the PhonePe Wallet itself, so receiving cashback does not automatically mean the wallet is active or subject to inactivity deductions.

Wallet inactivity fees are not unique to PhonePe and are charged by some prepaid payment instrument providers to cover maintenance and compliance costs for dormant accounts.

For users who have received a notification, the key takeaway is that these charges apply solely to the wallet balance, not to bank accounts or UPI-linked transactions.

Source: The Hindu

Latest in Economy 10

economy

Karnataka High Court Questions Bank Auction Valuation After Property Sold at Fraction of Its Worth

The Karnataka High Court has questioned the valuation of a 39-acre plantation sold in a bank auction for ₹99 lakh, noting the valuer lacked qualifications. The court issued a show-cause notice to the valuer for allegedly filing a false affidavit and undervaluing the property.

The Hindu 20 Jun 2026, 03:15 PM

economy

Nagapattinam Farmers Get ₹4,000 per Acre for Kuruvai Paddy: Special Package Covers 17,660 Acres

The Tamil Nadu government has extended its Kuruvai special package to 17,660 acres in Nagapattinam, offering farmers ₹4,000 per acre for machine planting or direct sowing. Additional subsidies on seeds, bio-fertilizers, and micro-nutrients are available to support short-term paddy cultivation.

The Hindu 20 Jun 2026, 12:14 PM

economy

Over 4,200 Workers, 657 Employers Benefit from PM's Job Scheme in Tiruchi

The Employees Provident Fund Organisation announced that 4,225 employees and 657 employers in Tiruchi will benefit from the PM-VBRY scheme, with ₹31.43 crore for employers and ₹2.28 crore for employees disbursed at a regional event.

The Hindu 20 Jun 2026, 11:18 AM

economy

Tax Filing 2026-27: Incorrect ITR Form May Trigger Automated Notice

Selecting the wrong ITR form during tax filing can result in an automated deficiency notice. The Income Tax Department uses seven forms, each matched to specific income types and taxpayer categories. Taxpayers must verify eligibility to avoid compliance issues.

NDTV 20 Jun 2026, 09:41 AM

economy

Kerala Budget Sidesteps Committed Expenditure Despite White Paper Warnings

Kerala's new UDF budget projects a marginal decline in debt-to-GSDP ratio but remains silent on reducing high committed expenditure, which accounts for over 72% of revenue receipts. The white paper had flagged this as a structural problem requiring tough decisions, but the budget only mentions revamping the pension scheme. Economists urge caution in interpreting the figures.

The Hindu 20 Jun 2026, 02:49 AM

economy

Tracking Food Spending: Gurugram Resident's Rs 35,400 Bill Over Three Months Exposes Cost of Convenience

A Gurugram resident tracked three months of food delivery spending and discovered a total of Rs 35,400, prompting reflection on the cost of convenience. The Reddit post sparked discussion about ordering habits and the benefits of cooking at home.

NDTV 20 Jun 2026, 01:20 AM

economy

Tamil Nadu finalises IPR policy with focus on Geographical Indications to boost economy

Tamil Nadu is finalising its Intellectual Property Rights policy, with a strong focus on Geographical Indications (GI) to support its goal of a $1.5 trillion economy by 2036. The state has filed 43 GI applications this year, and experts at a summit highlighted the role of GI in boosting exports, integrating with tourism, and using AI to preserve traditional knowledge.

The Hindu 19 Jun 2026, 07:39 PM

economy

Rajasthan Refinery Resumes Production After April Fire, Key Products Now Available

HPCL Rajasthan Refinery Limited (HRRL) has resumed production of key petroleum products after a fire in April halted operations. The refinery, a joint venture between HPCL and the Rajasthan government, is now producing diesel, LPG, petcoke, and naphtha, with diesel dispatch expected this week.

Times of India 19 Jun 2026, 05:04 PM

economy

Government disburses incentives to first-time employees, employers under new jobs scheme

The first disbursal of incentives under the Pradhan Mantri Viksit Bharath Rozgar Yojana has begun. 1,820 employees and 397 employers in three districts received payments, marking a step towards promoting formal employment.

The Hindu 19 Jun 2026, 04:04 PM

economy

Kerala Budget Hikes Rubber Support Price to ₹250 as Market Hits Record Highs

The Kerala budget raised rubber support price to ₹250 per kg, the highest since RPIS began, amid record market prices. The move fulfills a key UDF promise but draws criticism from opposition for not reaching ₹300. Farmers welcome the boost.

The Hindu 19 Jun 2026, 02:21 PM

→ View All Economy News