BRICS moves toward faster, cheaper cross-border payments

Members of the BRICS group of nations are discussing potential linkages between their respective fast payment systems and central ​bank digital currencies, Reserve Bank of India Governor Sanjay ‌Malhotra said at an event on August 11, Reuters reports.

The BRICS organisation includes Brazil, Russia, India, China and South Africa, among others. India is hosting the 2026 edition ​of the annual summit.

"Cross-border payments is an area of interest ​for all of us, including the BRICS, because we ⁠feel there is a lot of scope for reducing cost," Malhotra ​said in Mumbai.

"Various options are on the table, but it is ​still at discussion stage, including CBDCs (central bank digital currencies) and linkages of fast payment systems," he added.

Reuters reported earlier this year that the RBI recommended to the government ​that a proposal to connect CBDCs be included in the agenda ​for the 2026 BRICS summit.

The central bank will also continue its efforts to ‌internationalize ⁠the rupee and promote the use of local currencies for cross-border payments and trade, Malhotra said.

The governor also said that the RBI sees artificial intelligence as a capability to be harnessed ​and not just ​a risk ⁠that needs to be contained.

"Indian banks cannot afford to sit on the sidelines and watch," he said, ​urging lenders to inventory all AI models in ​use and ⁠establish board-approved AI governance policies.

Central banks globally have been paying close attention to lenders’ usage of AI amid worries over cyberattacks alongside operational ⁠and ​governance risks.

"Innovation and safety are not ​opposing goals, they are in fact complementary requirements of a durable financial system," Malhotra said.

By Vafa Guliyeva