PhonePe Users Alert: Big news for PhonePe users! Will money be deducted on every transaction now?

In today’s era, almost everyone is using mobile apps for online transactions. Meanwhile, PhonePe, one of the country’s largest digital payment platforms, has completely removed the huge confusion created among customers regarding ‘inactivity charges’ on its wallet. The company has issued an important clarification clearly saying that this new fee is applicable only to users who do not use PhonePe Wallet. This has nothing remotely to do with customers’ main bank accounts or everyday UPI transactions.

Actually, in the last few days, some important information and notifications related to wallet were sent by the company to many customers. After this, many people on social media and internet started feeling that perhaps this new charge is going to be applicable on their bank account or regular UPI transactions also. The company has completely rejected all these apprehensions and rumors of the customers.

PhonePe Wallet and UPI are two completely different services

According to the official statement of PhonePe company, generally many customers consider PhonePe account, UPI account and PhonePe Wallet as one service, whereas in reality these three are completely different systems. Different rules and regulations apply to operate all of these.

Explaining in detail, the company said that PhonePe Wallet is a kind of prepaid payment instrument (PPI), in which customers have to load money on their own before making payment. On the other hand, when you pay someone through UPI, the money is deducted directly from your linked bank account. Therefore, any additional charges incurred for not using the wallet will not impact the security of your UPI transactions or bank account at all.

No charges will be deducted from your main bank account

PhonePe has fully assured the customers that if a user does not have sufficient balance in his PhonePe wallet, in such a situation the inactivity fee will never be forcibly recovered from his bank account or through UPI. This fee will be limited only to the amount already available in the wallet and will automatically stop when the wallet balance reaches zero.

The company says that many customers like to make regular payments only through UPI, but if they do not use their PhonePe Wallet for a long time, then as per the rules that wallet is considered inactive. Your UPI activity and wallet activity are recorded completely separately in the Company’s systems.

Information is sent 15 days before the money is deducted.

According to PhonePe, a notification is sent to the user’s registered mobile number 15 full days before the inactivity fee is deducted from any wallet. During this 15 day grace period, the customer has several options. If he wants, he can reactivate his wallet, add new money to it, withdraw the remaining money or even close his wallet forever.

Wallet can be reactivated even without heavy KYC

While giving relief to the users making digital payments, the company has also said that to restart any inactive wallet, customers do not need to go through the lengthy full KYC process. Generally, you can reactivate it very easily by just doing a simple OTP verification and doing any small transaction through that wallet.

Apart from this, PhonePe has also completely clarified the situation regarding cashback available on the app. According to the company, most of the cashback amount received by customers does not go directly into the wallet, but is deposited as a separate ‘gift card balance’. Therefore, just because you receive cashback does not necessarily mean that your main wallet is active, nor will any inactivity fee be applied on that gift card amount.