Will BRICS countries link their payment systems?
What's the story
The BRICS group of nations is considering the integration of their fast payment systems and central bank digital currencies (CBDCs). The proposal was revealed by Reserve Bank of India (RBI) Governor Sanjay Malhotra during an event in Mumbai today. He said, "Cross-border payments is an area of interest for all of us, including the BRICS, because we feel there is a lot of scope for reducing cost."
Payment integration
Discussions on connecting CBDCs, fast payment systems
The BRICS nations, which include Brazil, Russia, India, China, and South Africa, are looking at ways to make cross-border payments cheaper and more efficient.
The RBI Governor said that several options are being discussed in this regard. These include linking fast payment systems and connecting CBDCs.
However, he clarified that these discussions are still at an early stage.
Currency promotion
India pushing for internationalization of the rupee
Along with the BRICS discussions, India is also pushing to internationalize the rupee and promote local currencies for cross-border trade and payments.
Earlier this year, the RBI had suggested that a proposal to connect CBDCs be included in the agenda for the 2026 BRICS summit.
This move is part of India's larger strategy to strengthen its position in global finance.
Cost reduction
Integrating CBDCs could cut out intermediaries
CBDCs are digital currencies issued by central banks. Their integration could make payments between countries more direct, cutting out multiple intermediaries and lowering transaction costs.
A similar strategy with fast-payment systems could let consumers and businesses use existing domestic payment infrastructure for cross-border transactions.
For India, this would boost the global adoption of the digital rupee while giving BRICS economies another option for trade settlement.