I’m trying to understand the charges involved in transferring money from the PhonePe Wallet to a bank account. Are there any fees applied to such transfers, especially for fully KYC-verified users?
Transferring money from the PhonePe Wallet to a bank account is allowed only for users who have completed full KYC verification. For such users, PhonePe currently does not charge any fee for wallet to bank transfers, making it a convenient way to move funds.
If you’re a fully KYC-verified PhonePe wallet user, you can transfer money from your wallet to a bank account, but there is a small fee involved. PhonePe charges around 2.5 percent per transaction for wallet-to-bank transfers.
This fee applies even if your account is fully verified. It’s mainly done to discourage wallet misuse and overuse for direct transfers. The charges are clearly shown on the confirmation screen before you complete the transfer, so you’ll know exactly how much is being deducted.
For regular money transfers, using UPI directly from your bank account is still free and a better option if you’re trying to avoid fees.