India and other BRICS nations are investigating interconnected digital payment systems and CBDCs to reduce the costs of international transactions, as part of broader efforts to establish independent trade infrastructure and promote the internationalisation of the Indian rupee ahead of the 2026 summit.
India and other BRICS members are exploring ways to connect their fast payment systems and central bank digital currencies, or CBDCs, in a bid to cut the cost of cross-border transactions, Reserve Bank of India Governor Sanjay Malhotra said on Tuesday. Reuters reported that Malhotra told an event in Mumbai that “there is a lot of scope for reducing cost” in international payments and that options under discussion included CBDCs and links between fast payment platforms. The comments fit with a broader push inside the bloc to build more independent payment rails for trade and settlements.
Malhotra said the RBI would keep working to internationalise the Indian rupee and encourage the use of local currencies in trade, a goal that has gained momentum as India prepares to host the 2026 BRICS summit. Video remarks shared from the event showed him backing India’s CBDC pilots and arguing that a regulated digital rupee is preferable to privately issued crypto-assets because it can support monetary policy and limit misuse such as money laundering.
The broader BRICS agenda has increasingly centred on practical payment infrastructure rather than a single common currency. A WION News report said the bloc’s members are discussing systems sometimes referred to as BRICS Pay or the BRICS Bridge, with support from the 2025 Brazilian and 2026 Indian chairmanships, as they seek to reduce reliance on Western-controlled messaging networks and the dollar in cross-border trade.
Industry and policy discussions around CBDCs have focused on their potential to make international transfers faster, cheaper and less cumbersome than the current multi-layered system. A report published by the BRICS think tank council said CBDCs could help ease frictions in cross-border payments, support financial inclusion and reduce costs, while an RBI-linked industry update said the Indian central bank sees CBDCs as a better option than stablecoins for preserving trust in money and financial stability. Malhotra also urged Indian banks to treat artificial intelligence as a tool to be adopted carefully rather than a threat to be avoided, saying institutions should maintain inventories of AI models and put board-approved governance in place.
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