India-led BRICS discussions are exploring ways to connect fast payment systems and central bank digital currencies, potentially cutting the cost of cross-border transactions and boosting local-currency payments.
BRICS nations are exploring ways to link their fast payment systems and central bank digital currencies (CBDCs) as the grouping looks to make cross-border payments cheaper and more efficient, Reserve Bank of India Governor Sanjay Malhotra said on Tuesday.
Speaking at an event in Mumbai, Malhotra said cross-border payments are a key area of interest for BRICS, with several options currently being discussed.
The proposals include linking fast payment systems and connecting CBDCs, although the discussions remain at an early stage. “Various options are on the table,” Malhotra said, adding that the idea was still under discussion.
What is BRICS trying to achieve?
The focus is on reducing the cost and friction involved in cross-border payments between member countries.
India is also pushing to internationalise the rupee and encourage greater use of local currencies for cross-border trade and payments, according to the RBI governor. The RBI had earlier recommended that connecting CBDCs be included in the agenda for the 2026 BRICS summit, Reuters reported.
Why CBDCs matter
CBDCs are digital versions of national currencies issued by central banks. Linking them could potentially allow payments between countries to move more directly, reducing dependence on multiple intermediaries and lowering transaction costs.
More from BusinessA similar approach involving fast-payment systems could allow consumers and businesses to make cross-border payments using existing domestic payment infrastructure.
For India, the move could strengthen the global use of the digital rupee and the rupee while giving BRICS economies another avenue for settling trade.
RBI’s message on AI
Malhotra also said the RBI views artificial intelligence as a capability that banks need to harness rather than simply a risk to contain.
He urged Indian lenders to identify all AI models being used and establish board-approved AI governance frameworks.
The RBI governor stressed that innovation and safety should work together, particularly as banks face growing cyber, operational and governance risks associated with AI.
