BRICS eyes CBDC, fast payment linkages, says RBI Governor
Reserve Bank Governor Sanjay Malhotra on Tuesday said the BRICS nations are in discussions to link their respective Central Bank Digital Currencies (CBDCs) and fast payment systems, such as India’s UPI, to facilitate cheaper and faster fund transfers for trade and remittances.
Addressing the annual Fibac event, Malhotra said cross-border payments are “an area of interest for all of us”, including the BRICS bloc, because there is a lot of scope to reduce costs, especially for retail transactions, and increase the speed. “There is a lot of work which is being done over there. And various methods, various options are on the table, but it is still at the discussion stage, including CBDC and linkages of fast payment systems,” he said.
The BRICS organisation includes Brazil, Russia, India, China and South Africa, among others. India is hosting the 2026 edition of the annual summit.
“Cross-border payments are 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 in Mumbai.
“Various options are on the table, but it is still at the discussion stage, including CBDCs (central bank digital currencies) and linkages of fast payment systems,” he added.
It was earlier this year that the RBI recommended to the Government that a proposal to connect CBDCs be included in the agenda for the 2026 BRICS summit. The central bank will also continue its efforts to internationalise the rupee and promote the use of local currencies for cross-border payments and trade, Malhotra said.
The Governor also said that the RBI sees artificial intelligence as a capability to be harnessed and not just a risk that needs to be contained.
“Indian banks cannot afford to sit on the sidelines and watch,” he said, urging lenders to inventory all AI models in use and establish board-approved AI governance policies.
Central banks globally have been paying close attention to lenders’ usage of AI amid worries over cyber-attacks alongside operational and governance risks. “Innovation and safety are not opposing goals; they are in fact complementary requirements of a durable financial system,” Malhotra said.
