BRICS members are exploring plans to link their Central Bank Digital Currencies (CBDCs) and fast payment systems, which could reduce the cost of transferring money between the bloc's economies, Reserve Bank of India Governor Sanjay Malhotra said on Tuesday.
Malhotra spoke at an event in Mumbai, naming cross-border remittances as a priority the group keeps returning to. However, he cautioned that the talks are at a very early stage. "Various options are being looked at, but they are still at a discussion stage, including central bank digital currencies (CBDCs) and integration of fast payment systems," he said.
The governor stated the reason for this focus is cost savings: "Cross-border payments are of interest to all of us, including the BRICS nations, because we feel there is great scope to reduce costs here."
Why Linking BRICS Nations' CBDCs Could Reduce Costs
Central Bank Digital Currencies (CBDCs) are digital forms of countries' official currencies, issued directly by their central banks. Creating a channel between these currencies would allow payments to be made in a more direct and simpler way between countries. This would remove the intermediaries money typically passes through and lower the cost of each transfer.
A payment mechanism using linked CBDCs would function differently, but its goal is to speed up the transfer of money abroad for consumers and businesses through already existing domestic channels. These channels would also expand the reach of the Indian rupee.
India Aims for Rupee Internationalization
RBI Governor Malhotra said the central bank will continue to work on internationalizing the rupee and promoting local currencies for trade and payments across borders. India is hosting the BRICS summit this year, an annual event bringing together the five countries: Brazil, Russia, India, China, and South Africa.
Earlier, the Reserve Bank of India had asked the Indian government to include a proposal on linking Central Bank Digital Currencies (CBDCs) on the summit's agenda in early 2026. The country's drive to internationalize its currency is one of the main reasons for pushing forward with efforts to link CBDCs within BRICS.
The governor also spoke at the event about Indian banks and financial institutions and their use of artificial intelligence. He urged them to catalog all AI models already operating in their institutions and to adopt an AI governance policy approved by their boards.
