The National Payments Corporation of India (NPCI) clarified in a statement on Monday that no fraudulent activities have been detected on the Unified Payments Interface (UPI) platform and that there is no evidence indicating a security breach, in response to recent media reports about a new online scam known as the “Jumped Deposit” Scam.
These reports’ appearance has sparked worries, especially when it comes to consumers purportedly losing money through unauthorized transactions. To reassure the public and offer clarification on how UPI, which is still one of the most secure digital payment systems in the world, operates, NPCI has addressed a number of technical concerns.
Key clarifications from NPCI:
- Transactions do not get approved automatically
As the NPCI has noted, a transaction is not authorized or approved just by launching a UPI or banking app. Users must actively travel to the payment request, select the “pay” option, and then input their UPI PIN in order for any payment to be made.
Claims of automated or unauthorized transfers will be refuted as the transaction will not be performed without these crucial stages.
- No external party can directly withdraw funds
The NPCI also pointed out that no outside party may utilize UPI to directly request or remove money from a user’s account, unlike what certain media stories have claimed. The UPI system is device-based and securely connects the user’s registered phone number and device to the payment account.
This prevents unauthorized withdrawals by guaranteeing that only the account holder can authorize and start transactions.
- PIN input is required for all transactions
The function of the UPI PIN was another frequent misunderstanding that the NPCI cleared up. The organization made it clear that inputting the UPI PIN is necessary for both balance queries and payment activities.
Crucially, entering a UPI PIN is regarded as a distinct step in the procedure, strengthening the security protections in place, and does not automatically authorize a transaction or fund withdrawal.
The public was also reassured by the NPCI on the UPI platform’s overall security infrastructure. With its high degree of interoperability across different banks and applications and its real-time payment capabilities, UPI has been built with strict security standards to guarantee the safety of customers’ money. Furthermore, UPI remains one of the most reliable digital payment systems in the world because to its multi-factor authentication and encryption capabilities.
Users were advised by NPCI to continue using UPI with confidence in spite of the misunderstanding caused by recent media stories.
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