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BRICS Nations Discuss Linking Payment Systems and CBDCs, RBI Governor Says
The BRICS group of nations is in discussions to link their respective fast payment systems and is exploring the use of central bank digital currencies (CBDCs) for cross-border transactions. The remarks were made by Reserve Bank of India (RBI) Governor Sanjay Malhotra at an event in Mumbai on Tuesday.
Streamlining International Payments
Governor Malhotra identified lowering the high cost of international payments as a key driver for the discussions. "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," he said.
He confirmed that while several options are being considered, the talks are still in a preliminary phase. The primary proposals being evaluated include:
- Direct linkages between the fast payment systems of member countries.
- The potential use of central bank digital currencies for international settlements.
Context and Strategic Goals
AdThe initiative is part of a broader effort by the BRICS bloc—which includes Brazil, Russia, India, China, and South Africa—to create alternative financial infrastructures. According to a previous Reuters report, the RBI had recommended that connecting CBDCs be included on the agenda for the 2026 BRICS summit, which India is hosting.
Malhotra also reiterated the central bank's ongoing efforts to internationalize the Indian rupee and encourage the use of local currencies for cross-border trade and payments among partner nations.
RBI Urges Responsible AI Adoption
In the same address, the governor also commented on the role of artificial intelligence in finance, describing it as a "capability to be harnessed and not just a risk that needs to be contained." He urged Indian banks to establish board-approved AI governance policies and maintain a comprehensive inventory of all AI models in use.
Malhotra stressed that financial stability and technological advancement can coexist. "Innovation and safety are not opposing goals, they are in fact complementary requirements of a durable financial system," he concluded.
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