Mumbai, Aug 12: BRICS countries are exploring ways to connect their central bank digital currencies (CBDCs) and fast payment systems as part of efforts to make cross-border payments quicker, more efficient and less expensive, Reserve Bank of India Governor Sanjay Malhotra said.
The discussions are still at an early stage, with member countries examining different options for improving the way money moves across borders. The focus is particularly relevant for trade, remittances and other transactions where delays and high costs can make international payments difficult.
Malhotra said cross-border payments remain an important area of interest for BRICS, with considerable scope to reduce costs and improve transaction speeds. Various approaches, including CBDC connectivity and linking fast payment systems, are being considered.
India’s Unified Payments Interface (UPI) has demonstrated how instant digital payments can make everyday transactions faster and simpler. Linking similar systems across countries could potentially provide a smoother experience for people and businesses making international payments.
The discussions also reflect the growing interest among central banks in using digital currencies and modern payment infrastructure to improve cross-border financial connectivity.
India has been advocating greater cooperation in this area and earlier proposed that connecting CBDCs be considered as part of the BRICS agenda. As the group explores possible models, issues such as regulatory coordination, security, interoperability and consumer protection will remain important.
The initiative could be particularly useful for smaller-value transactions, including remittances, where payment costs can have a direct impact on individuals and families.
For businesses, faster and more affordable cross-border payments could make international trade settlements more convenient and reduce some of the friction involved in dealing with multiple payment systems and currencies.
The RBI is also continuing its efforts to promote wider international use of the Indian rupee and encourage the use of local currencies in cross-border trade and payments.
No common BRICS payment system has been finalised, and the discussions remain exploratory. However, the focus on connecting existing fast-payment networks and digital currencies signals a growing interest in building more efficient financial links among member countries.
If the participating nations can develop compatible systems while addressing regulatory and security concerns, greater payment connectivity could eventually make cross-border transactions faster, simpler and more accessible for businesses and ordinary users alike.