Explained: How to reactivate your dormant MobiKwik, Paytm and Freecharge mobile wallets

Recently, MobiKwik announced a reactivation program for its users. Inactive users were sent messages to log in to their MobiKwik app to become active again. Those who did not make any transactions using the app for the past one year were sent a notification to reactivate their e-wallets.

“Users who do not reactivate may have to pay nominal maintenance charges to keep their wallet services functional,” says Upasana Taku, Co-founder of MobiKwik.

Other e-wallet firms such as Paytm and Freecharge have not introduced any such charges for their inactive users.

What does an inactive wallet mean?

According to Reserve Bank of India (RBI) guidelines, a pre-paid instrument such as an e-wallet (mobile wallet) is considered inactive if there are no transactions for a year. The e-wallet company can send notifications if you are inactive.

If you add money to your e-wallet or spend regularly using the app, you need not worry. When your wallet is marked inactive, you need to reactivate it to start transacting again.

How much will MobiKwik deduct as wallet maintenance charges?

According to the terms and conditions given on the website, MobiKwik will charge inactive e-wallets consumers Rs 100 to Rs 140 as wallet maintenance charges. This will be an annual charge. If the consumer fails to reactive the e-wallet after a seven-day notice period, then the company will deduct the applicable charges directly from existing balance in the wallet.

Suppose your MobiKwik wallet has Rs 50 as a balance, the company will be able to deduct only that much amount even if you are liable to pay Rs 100 as wallet maintenance charges. But, if your wallet has Rs 200 in the wallet, then Rs 100 will be deducted towards wallet maintenance charges. “Inactive users with zero balance wallets will not be levied wallet maintenance charges,” says Taku. The wallet balance will not be negative.

Also read: Be ready to pay for loading your Paytm wallet through credit cards

Will I get my money back after I activate my e-wallet account?

Yes, the amount deducted by MobiKwik will be refunded if you use the wallet for any transaction within 40 days of deduction of the maintenance charge.

How do I reactivate my inactive wallet?

If your Freecharge e-wallet is inactive, then you need to do verification through the app using your permanent account number (PAN) and registered mobile number linked with the wallet. If you wish to reactivate your MobiKwik e-wallet, you will have to contact the customer care and comply with applicable validation norms as prescribed.

After completing activation process, you can add money in the e-wallet and spend it.

Will I be able to pay my utility bills, recharge prepaid mobiles using the app even if the wallet is inactive?

Most e-wallets allow you to use your credit or debit cards or your netbanking or even Unified Payments Interface (UPI) to make payments.

You can complete the transactions on the app using those options. You can pay through your e-wallet balance only after reactivation.

What will happen to the cashbacks that are offered by the merchants?

Even if the wallet is inactive, you will continue to receive cashbacks as part of offers that are applicable for your transactions. Digital payment apps give cashbacks on the credit card transactions. If you pay via netbanking, debit cards or UPI, then the cashback amount is directly credited to the bank account.

Also read: The pros and cons of paying credit card bills through third-party mobile apps

What are the steps to close inactive wallets?

If you don’t use e-wallets, it’s important to close them by following a standard process. Just uninstalling an app from the mobile handset doesn’t close the e-wallet account. The procedure to close inactive wallets varies across companies. For instance, if you have an inactive e-wallet from Freecharge then to close the e-wallet you will have to raise a request through an email or by calling the customer service. They will do a validation while closing the e-wallet.

Load only the amount that you are likely to use every month and no more.