BRICS explores linking fast payment systems and CBDCs to cut cross-border costs

BRICS nations are considering linking their fast payment systems and national digital currencies to lower the costs of cross-border transactions, according to Reserve Bank of India Governor Sanjay Malhotra. Speaking in Mumbai on Tuesday, Malhotra said connecting fast payment systems and CBDCs were among several options being considered, although the discussions remain at an early stage. The RBI had previously recommended discussing links between BRICS digital currencies at the 2026 summit, which India will host. The proposal would link CBDCs and payment networks such as India’s UPI and China’s CIPS to make cross-border payments more resilient and reduce reliance on traditional dollar-based channels. However, technical, regulatory and governance hurdles remain, while broader adoption and supporting tools such as currency swap lines would be needed for the system to work at scale. Alongside the cross-border payments push, the RBI plans to keep advancing the internationalization of the rupee and the use of local currencies for trade and payments. Malhotra also urged Indian banks to take a proactive approach to AI, saying they should identify all models in use and implement board-appro...