In image processing, image interpolation is considered to be a very important branch of study. It is very popularly used in the digital imaging processes. In case of Reversible Data Hiding (RDH) process, the cover image can be scaled up or down according to the requirement without compromising the originality of the input image and the secret data can be hidden into the interpolated image. After extraction of the secret data at the receiver's end, the cover image can be recovered by discarding the interpolated points in the image. In the proposed scheme, more than one bit (maximum of 4 bits) can be embedded in the same pixel, only with maximum of ±1 value change in the pixel value. Even though the additional information involved in restoring the cover image and the payload is more, the distortion (Peak Signal to Noise Ratio-PSNR) in the marked image is kept minimal since the embeddable points change only by ±1. The experimental results show that this scheme is superior to the available imageinterpolation based RDH schemes in terms of payload capacity and perceptual quality of the images. © 2016 IEEE.