Reserve Bank of India (central bank) Governor Sanjay Malhotra announced that the BRICS group is exploring potential linkages between the fast payment systems and central bank digital currencies of member countries.
"Cross-border payments are an issue that concerns us all, including BRICS countries, because we see there is ample room to reduce costs," Malhotra said during an event held Tuesday in Mumbai.
He stressed that "there are various options on the table, but they are still in the discussion phase, including central bank digital currencies and linking fast payment systems."
He added that the central bank will also continue its efforts to internationalize the rupee and encourage the use of local currencies in payments and cross-border trade.
He pointed out that the Reserve Bank of India sees artificial intelligence as a capability to be utilized, not merely a risk to be contained.
He continued: "Indian banks cannot stand idly by and merely observe," and urged credit institutions to inventory all AI models in use and establish AI governance policies approved by their boards of directors.
Reuters reported earlier this year that the Reserve Bank of India had recommended that the government include a proposal to link central bank digital currencies on the agenda of the 2026 BRICS summit.
It is worth noting that the BRICS group is an international grouping that was founded in 2006 at the initiative of Russia, China, India and Brazil, and South Africa joined it in 2011.
Since the beginning of 2024, an additional group of countries has joined, and India will assume the rotating presidency of the group during 2026.
BRICS is exploring the creation of alternative payment mechanisms and conducting more trade in their national currencies, a move that weakens the dollar as the world's reserve currency.
