NPCI Jumped Deposit Scam: In response to recent media reports surrounding a new online fraud called the ‘Jumped Deposit’ Scam, the National Payments Corporation of India on Monday issued a statement clarifying that no fraudulent activities have observed on the Unified Payments Interface (UPI) platform, and there is no evidence suggesting any breach of security.

The emergence of these reports, particularly in the context of users allegedly losing funds through unauthorised transactions, has raised concerns. However, NPCI has clarified several technical points to reassure the public and provide clarity on the functioning of UPI, which remains one of the most secure digital payment systems in the world.

Key clarifications from NPCI:

• Transactions do not get approved automatically

The NPCI has pointed out that simply opening a UPI or banking app does not authorise or approve a transaction. In order for any payment to occur, users must actively navigate to the payment request and click on the ‘pay’ option, followed by entering their UPI PIN.

Without these critical steps, the transaction will not be processed, debunking claims of automatic or unauthorised transfers.

• No external party can directly withdraw funds

Contrary to the claims in some media reports, the NPCI also noted that no external party can directly request or withdraw funds from a user’s account through UPI. The UPI system is designed to be device-based, linking the payment account securely to the user’s registered phone number and device. This ensures that only the account holder can authorise and initiate transactions, making unauthorised withdrawals impossible.

• PIN input is required for all transactions

Another common misconception addressed by the NPCI was the role of the UPI PIN. The organisation clarified that entering the UPI PIN is required not just for payment transactions, but also for balance inquiries.

Importantly, the input of a UPI PIN does not automatically authorise a transaction or fund withdrawal—it is treated as a separate step in the process, reinforcing the security measures in place.

The NPCI also reassured the public about the overall security infrastructure of the UPI platform. With real-time payment capabilities and a high degree of interoperability across various banks and apps, UPI has been designed with stringent security protocols to ensure that users’ funds are safe. Additionally, UPI’s layered security features, such as encryption and multi-factor authentication, continue to make it one of the most trusted digital payment systems globally.

Despite the confusion sparked by recent media reports, NPCI encouraged users to continue using UPI with confidence.