NPCI clarifies on ‘Jumped Deposit’ scam in UPI payments

Sabyasachi Kundu

New Delhi: The National Payments Corporation of India (NPCI) has dismissed the recent media reports about a ‘Jumped Deposit’ scam, stating that no incident of fraud, as mentioned in the reports, has been found on the UPI platform.

“In light of recent media reports concerning a new online fraud called ‘Jumped Deposit’ Scam, we have observed certain inaccuracies and technical discrepancies in these descriptions, that has led to unnecessary panic and confusion among users about the UPI platform. We would also like to clarify that no instances of fraud, as described in the articles on ‘Jumped Deposit’ Scam, have been observed on the UPI platform,” the NCPI said.

The NCPI further clarified that simply opening a UPI or bank application does not automatically approve a transaction. For a transaction to occur, the user must navigate to the payment request and explicitly click on the ‘pay’ option to authorise it with UPI PIN. Without this step, the payment will not get processed.
“No external party can directly request or withdraw funds from the user’s account. UPI is a device-based payment system, meaning the payment account is securely linked to the user’s registered number and their specific mobile device. Only the user can initiate transactions or withdrawals, ensuring that others cannot access their funds,” NCPI stated.

Entering the PIN is required even for balance enquiry transactions, and it does not automatically authorise any withdrawal or payment requests which is treated as a separate transaction.

The National Payments Corporation of India said that UPI transactions are backed by robust safety protocols and stringent regulatory measures. UPI’s real-time capabilities and interoperability have not only simplified transactions but have also accelerated the adoption of digital payments.