The Reserve Bank of India (RBI) has introduced a proposal for a ‘Kill Switch’ feature aimed at bolstering the security of digital payment systems, which is anticipated to mitigate online fraud. Data from the National Cyber Crime Reporting Portal (NCRP) indicates that approximately 2.8 million cases of digital payment fraud were recorded in 2025, resulting in losses of ₹22,931 crores.

In its document titled ‘Discussion Paper – Exploring Safeguards in Digital Payments to Curb Frauds’, the central bank has outlined various strategies to tackle the increasing instances of fraud in digital transactions.

The RBI highlighted that existing card payment systems provide users with a ‘switch on/off’ option for both domestic and international transactions, as well as the ability to set limits for different transaction types. This feature has proven effective in giving consumers greater control over their payment instruments, thereby decreasing the frequency of fraud cases.

Nevertheless, the RBI observed that comparable user-controlled features are not consistently available across other digital payment platforms.

In Singapore, a similar ‘Kill Switch’ feature has been implemented, allowing users to quickly disable their online banking accounts through a mobile application or customer service hotline, thereby blocking fund transfers, digital banking access, and payment functionalities. This action may only be reversed following identity verification by the respective bank.

The RBI suggests that a unified ‘Kill Switch’ could be made available to customers, enabling them to deactivate all digital payment transactions from their accounts simultaneously. It stated that activating the ‘Kill Switch’ would take precedence over other controls or settings established by the user.

“Once the kill switch is activated, re-enabling digital payments can be executed through digital channels after appropriate authentication and verification, or by visiting a bank branch in person. For reactivation via digital channels, banks may implement stringent verification measures to confirm the identity of the customer,” it explained.

However, the RBI noted that certain transaction types, such as payment mandates and standing instructions, might be excluded from the ‘Kill Switch’ functionality.

“While extending the digital payment controls and the kill switch as an optional feature for current users is feasible, a significant policy consideration is whether new customers should have digital payment modes deactivated by default unless they actively choose to enable them,” the report added.

Anish Mondal, a journalist with over nine years of experience in railway and roadway coverage, is currently part of the editorial team at Indianexpress.com and specializes in sectors with high impact.

In his professional journey, Anish began at Rajya Sabha Television (now known as Sansad TV), where he gained a solid foundation in legislative processes and governance. He shifted to digital financial journalism in 2018 at FinancialExpress.com, where he honed his skills in market analysis and corporate reporting for nearly six years. Prior to joining The Indian Express in 2025, he played a vital role at ETNowNews.com.

Anish’s journalistic work is supported by a strong academic foundation in communication and the humanities, including:

• Master of Journalism and Mass Communication (MJMC) – Apeejay Stya University
• Post Graduate Diploma in Journalism and Production (PGTVRJP) – Apeejay Institute of Mass Communication
• Bachelor of Arts (English Honours) – University of Calcutta

His areas of reporting include extensive coverage of the development of Indian Railways and the National Highway networks.

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