MUMBAI — BRICS nations are discussing ways to link their fast payment systems and central bank digital currencies as they seek to make cross-border transactions cheaper, Reserve Bank of India Governor Sanjay Malhotra said on Tuesday.
“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,” Malhotra said at an event in Mumbai. He said several options remained under discussion, including connecting fast payment systems and central bank digital currencies, or CBDCs.
The discussions are at an early stage, with no agreement announced on a specific technical framework or timetable for implementation. The initiative is being considered as India hosts the 2026 BRICS summit.
BRICS originally comprised Brazil, Russia, India, China and South Africa and has since expanded its membership. The group has sought to strengthen financial cooperation among members, including efforts to facilitate trade and payments using national currencies and alternative payment infrastructure.
Malhotra said the Reserve Bank of India would continue efforts to internationalize the rupee and encourage the use of local currencies for cross-border payments and trade.
India has already pursued bilateral links between its Unified Payments Interface, or UPI, and other countries' fast payment systems. The UPI-PayNow connection with Singapore is operational, while India has said it is working on additional bilateral and multilateral arrangements.
The RBI had earlier recommended that a proposal to connect BRICS central bank digital currencies be included on the agenda for this year's summit, according to Reuters reporting. Such systems could allow participating countries to explore direct digital settlement mechanisms for cross-border transactions, although technical, regulatory and policy issues would need to be addressed before any broader integration.
Malhotra also said the RBI viewed artificial intelligence as a capability that banks should develop while maintaining safeguards against cybersecurity, operational and governance risks. He urged Indian lenders to identify the AI models they use and establish board-approved governance policies.
For the BRICS payment initiative, however, Malhotra said discussions remained ongoing, with multiple options still on the table. No final decision on linking the members' payment systems or CBDCs was announced.
