NPCI Clarifies ‘Jumped Deposit’ Scam: No Fraud Observed on UPI Platform

Mumbai, 13th January 2025: The National Payments Corporation of India (NPCI) has issued a clarification to address misconceptions regarding the so-called ‘Jumped Deposit’ Scam, which has recently been highlighted in media reports. NPCI emphasized that the descriptions in these reports are technically inaccurate and have caused unnecessary panic among users of the Unified Payments Interface (UPI) platform.
In its statement, NPCI reassured users that no incidents of fraud, as described in the reports, have been observed on the UPI system. The organization outlined key clarifications to dispel myths and reinforce trust in the platform:
Transaction Authorization: Simply opening a UPI or bank application does not lead to an automatic transaction. A payment is processed only when the user actively navigates to the payment request, selects the ‘pay’ option, and authorizes it by entering their UPI PIN. Without these steps, no transaction can take place.
Secure Device-Based System: UPI is a device-based payment platform that securely links the user’s account to their registered mobile number and specific device. This ensures that only the account holder can initiate transactions, preventing unauthorized access by third parties.
PIN Requirement for All Transactions: Even for balance inquiries, the user must input their UPI PIN. However, this action does not automatically authorize any payment or withdrawal requests, as these require separate explicit approval.
NPCI highlighted that the UPI platform is supported by robust safety protocols and strict regulatory measures, making it secure and reliable. The system’s real-time capabilities and interoperability have played a pivotal role in popularizing digital payments across the country.
For further information and updates, users are advised to rely on official NPCI communications and avoid baseless rumors regarding the safety of the UPI platform.