PhonePe Wallet Fee: Is Your Balance Quietly Shrinking?

PhonePe can charge a fee on dormant prepaid wallets. Your UPI payments and bank account are safe — but any balance sitting unused inside the wallet itself may get deducted over time if you don't use it.

Here's what happened: PhonePe prepaid wallets classified as dormant after a period of inactivity may attract maintenance or inactivity fees under RBI's prepaid payment instrument rules.. UPI payments, linked bank accounts, and direct bank transfers are completely separate from the wallet — they are NOT affected by wallet dormancy rules.. RBI guidelines allow prepaid wallet issuers to deduct fees from idle balances, but require clear disclosure in terms and conditions before activation..

What you should do: Check your PhonePe wallet balance right now — open the app, tap 'Wallet', and see if any balance is sitting unused.. Transfer any idle wallet balance back to your linked bank account immediately using the 'Transfer to Bank' option to avoid fee deductions.. Read PhonePe's wallet terms or FAQs to know the exact dormancy period and fee amount — typically disclosed under 'Wallet Terms' in app settings..

Under RBI rules, all prepaid wallet balances are insured only up to ₹1 lakh and are NOT covered by DICGC deposit insurance — unlike your savings bank account.