Clarification on the ‘Jumped Deposit’ Scam: Addressing Technical Misconceptions

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.

To address these concerns and ensure clarity, NPCI would like to provide the following key clarifications:

• 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.

• Inputting 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.

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.

We encourage users to continue using UPI with confidence, assured by its robust, built-in security features that makes it both secure and reliable.

About NPCI:

National Payments Corporation of India (NPCI) is the central body responsible for overseeing retail payments and settlement systems in India. It is established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). The Company is focused on bringing innovations in the retail payment systems by using technology for achieving greater efficiency in operations and widening the reach of payment systems. NPCI is committed to harnessing the transformative potential of deep tech, creating an ecosystem that fosters collaboration to work on breakthrough technologies. Underlining its commitment to service, NPCI has been incorporated as a “Not for Profit” Company to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.

NPCI has made a profound impact on India’s retail payment landscape, focusing on creating robust, efficient, and inclusive payment and settlement solutions. NPCI has been instrumental in introducing a range of products that have revolutionised retail payment systems. These include Unified Payments Interface (UPI), RuPay, National Automated Clearing House (NACH), Immediate Payment Service (IMPS), National Electronic Toll Collection (NETC), Aadhaar Enabled Payment System (AePS), e-RUPI and more. Each of these products has contributed significantly to enhance the efficiency and accessibility of payment systems in India, ultimately propelling financial inclusion.

NPCI has played a fundamental role in establishing the foundation for India’s rapidly growing digital payments ecosystem, projecting the country onto the global stage.

NPCI has three wholly owned subsidiaries – NPCI International Payments Limited (NIPL) and NPCI Bharat BillPay Limited (NBBL) and NPCI BHIM Services Limited (NBSL), established in pursuance of NPCI Board & RBI approval.

For more information visit: https://www.npci.org.in/