India to push unified digital payments system at BRICS summit

India, which holds the BRICS presidency this year, is expected to present a proposal for seamless cross-border digital payments and the use of central bank digital currencies among the group’s members at a BRICS summit in New Delhi next month, The Economic Times reported, citing sources familiar with the discussions.

New Delhi also wants the bloc to discuss the need for more balanced intra-BRICS trade and ways to reduce transaction costs, the sources said. A final decision on whether to include the issues on the summit agenda is expected to be made soon.

A high-level meeting is expected to take place ahead of the summit to discuss mechanisms for using digital currencies and ways to expand trade within BRICS using national currencies. Participants are also expected to determine the next steps for a mechanism aimed at rapidly integrating the group’s payment systems, which could be adopted at the summit.

The Reserve Bank of India is studying ways to facilitate cross-border digital transactions within BRICS as part of its pilot project on central bank digital currencies.

No BRICS member has yet fully launched a central bank digital currency, with countries testing various aspects, including practical use, applications and security. Ensuring interoperability between different systems remains a key challenge and would require coordination of the underlying technologies.

The BRICS summit is scheduled to take place in New Delhi on September 12-13.

By Tamilla Hasanova