Members of the BRICS grouping are examining ways to interconnect their national fast payment platforms and central bank digital currencies (CBDCs). The aim is to lower the high costs and lengthy delays that currently characterize many international money transfers, according to recent comments from India’s central bank leadership.
Reserve Bank of India Governor Sanjay Malhotra stated that cross-border payments remain a shared priority for the bloc.
He noted significant room exists to cut expenses, particularly for everyday retail transfers, while accelerating settlement times.
Domestic systems such as India’s Unified Payments Interface (UPI) complete transactions almost immediately, he observed, in contrast to foreign remittances that often require hours or even days to process.
Malhotra confirmed the existence of a dedicated BRICS task force focused on payments and indicated that several approaches are under consideration, including CBDC connections and linkages between fast payment systems. These talks, however, are still preliminary.
India currently holds the BRICS presidency and will host the group’s 2026 summit. Earlier in the year, the RBI had reportedly suggested placing CBDC interoperability on the summit agenda.
The broader objective aligns with ongoing efforts to expand the international use of the Indian rupee and encourage settlements in local currencies for trade and payments.
While bilateral arrangements already allow some transactions in national currencies with select partners, the volumes involved remain modest, and authorities are working to expand awareness and participation through new memoranda of understanding with other central banks.
The practical appeal of such linkages is clear.
Traditional cross-border transfers often rely on multiple intermediary banks, adding fees and friction.
Connecting existing fast payment rails—such as India’s UPI, Brazil’s Pix, or equivalent systems in other member countries—could shorten the chain of intermediaries.
Interoperable CBDCs might further enable more direct settlements between digital forms of national currencies, supporting trade and tourism flows without always routing through traditional correspondent networks or dominant third-party currencies.
states approach the discussion from differing positions.
India operates a mature, high-volume instant payment system alongside an ongoing digital rupee pilot. Brazil’s Pix network has processed tens of billions of transactions.
China has advanced further with its digital yuan, while Russia is expanding digital ruble services and South Africa maintains a more measured stance focused largely on wholesale applications and broader payment modernization.
Any shared framework would need to accommodate these varied stages of development, along with differences in regulation, technical standards, and governance.
Challenges extend beyond technology.
Officials have previously flagged issues around regulatory alignment, cybersecurity, compliance requirements, and the management of trade imbalances.
Faster settlement alone does not resolve situations in which one country accumulates large holdings of another’s currency that prove difficult to recycle productively.
Supporting mechanisms such as liquidity arrangements or currency swap facilities would likely prove necessary for any system to operate effectively at scale.
The discussions form part of a wider BRICS interest in more efficient, accessible, and resilient cross-border payment options.
They stop short of proposals for a single shared currency.
Instead, the focus remains on practical interoperability that could reduce reliance on costly legacy channels while preserving the sovereignty of each member’s monetary system.
Progress will depend on continued technical and policy coordination among the members.
If successful, linked systems could deliver tangible benefits in the form of lower fees and quicker transfers for businesses and individuals engaged in trade and remittances across the bloc. For now, the conversations continue at an exploratory stage as India prepares to host the upcoming summit.