PhonePe ringfences inactivity fees to dormant wallet balances; UPI and bank rails untouched

PhonePe clarified that inactivity charges hit only prepaid wallet balances, sparing linked bank accounts and UPI flows. Users receive 15-day advance notice, and reactivation requires just an OTP plus a transaction rather than fresh KYC. Cashback is held separately in a gift-card balance, insulating it from the fee.

— Filed Sat, 20 Jun, 2026, 15:49 IST · Source ET Small Business · Updated

PhonePe clarified that wallet inactivity fees apply only to dormant prepaid wallet balances, not to linked bank accounts or UPI transactions. Users get 15-day advance notice; reactivation needs OTP plus a transaction, not full KYC. Cashback sits in separate gift-card balance.