·
India’s
BRICS position: As BRICS chair in 2026, India is expected
to encourage member countries to expand the use of central bank digital currencies (CBDCs)
for cross-border trade and payments.
·
No
common BRICS payment system: India is unlikely to support creation of a single
bloc-wide payments settlement network at the BRICS Summit in
New Delhi.
·
Reason
for caution: New Delhi does not want a unified BRICS
payment system to be perceived as:
o A direct rival to SWIFT;
o An explicitly anti-dollar initiative;
or
o An anti-Western
financial arrangement.
·
India’s
alternative proposal: India favours linking the CBDCs of BRICS countries
to facilitate bilateral cross-border transactions.
·
Expected
benefits: CBDC-based settlement could:
o Reduce dependence on intermediary banks;
o Lower transaction costs;
o Speed up cross-border payments; and
o Facilitate direct settlement of bilateral
trade.
·
Local-currency
settlement: India also supports greater use of local currencies for trade settlement,
avoiding the need for a third currency such as the US dollar.
·
Reducing
SWIFT dependence: BRICS members have been exploring ways to
link their payment systems and reduce reliance on the Western-dominated SWIFT network,
particularly after Russian banks were disconnected from SWIFT following the 2022 Russia-Ukraine war.
·
Existing
local-currency trade: Use of local currencies has expanded
significantly:
o About 96% of India-Russia trade reportedly takes
place through established rupee-ruble mechanisms, according to Sberbank
India.
o Almost all Russia-China trade is reportedly settled in
yuan and rubles.
·
CBDC
initiatives: India is piloting the digital rupee, while China and Russia are
also experimenting with their respective CBDCs.
·
Other
possible initiative: BRICS leaders may consider connecting instant mobile payment systems
used for small-value retail transactions across member countries.
·
Government
clarification: MEA spokesperson Randhir Jaiswal
cautioned against drawing conclusions before the joint statement, saying the
Finance Ministers–Central Bank Governors discussions should be awaited.
·
India’s
broader approach: India is presenting BRICS financial
cooperation as development-focused,
with emphasis on facilitating trade,
economic cooperation and practical payment solutions, rather
than creating an alternative anti-dollar financial bloc.
India favours interoperable CBDCs and
local-currency settlement within BRICS, but not a politically charged, unified
BRICS payments network designed to challenge SWIFT or the US dollar.
[ABS News Service/10.09.2026]
India
will encourage BRICS nations to expand the use of central bank-backed digital
currencies for cross-border payments. However, it will not support a unified
payments network that could be seen as a challenge to the US dollar, as per a
report.
According
to a report in Bloomberg that cited sources familiar with the matter, as the
chair of BRICS this year, Prime Minister Narendra Modi is supporting using
central bank digital currencies to settle bilateral trade among member
countries. However, an agreement on a single bloc-wide payments settlement
system at the upcoming leaders’ summit in New Delhi is unlikely, the sources
added.
BRICS,
which includes Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia,
Saudi Arabia, South Africa and the United Arab Emirates, has been working to
link members’ payment systems to reduce reliance on the global SWIFT network,
dominated by Western nations. This move gained attention after several Russian
banks were cut off from SWIFT following Russia’s invasion of Ukraine in 2022.
Nevertheless,
New Delhi remains cautious about a unified BRICS payments system that could be
seen as a rival to SWIFT and cast the group as explicitly anti-dollar or
anti-Western, as per the report. Instead, India proposes linking central bank
digital currencies of BRICS countries for cross-border transactions to reduce
reliance on banks and lower costs.
India
also supports using local currencies to settle trade instead of a third
currency like the dollar.
Ministry
of External Affairs spokesman Randhir Jaiswal said it was premature to conclude
what was discussed at the Finance Ministers-Central Bank Governors meetings and
urged reporters to await the joint statement. He described India’s approach to
BRICS cooperation, including finance, as development focused, emphasising
measures supporting trade and economic ties.
The
use of local currencies within BRICS has increased, especially after Western
sanctions on Russia. About 96% of India’s trade with Russia now takes place
through established rupee-ruble mechanisms, according
to Sberbank in India. Almost all trade between Russia and China is settled in
yuan and rubles, Russian news agency Interfax
reported.
India
is piloting a digital rupee, while China and Russia are also experimenting with
their own central bank digital currencies. BRICS leaders may also discuss
connecting instant mobile payment systems used for small-value retail
transactions.