BRICS Explores Linking Payment Systems and CBDCs to Cut Costs

The BRICS group of nations is exploring the integration of their fast payment systems and central bank digital currencies to reduce the cost and increase the speed of crossborder transactions, according to Reserve Bank of India Governor Sanjay Malhotra. Speaking at an event in Mumbai on August 11, Malhotra stated that discussions are underway but remain at an early stage, with no agreed architecture or launch timetable.

"Crossborder 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. He noted that various options are being considered, including linking fast payment systems and connecting CBDCs. The governor cited India's Unified Payments Interface as an example of instantaneous domestic settlement, questioning why foreign remittances should take hours or days.

The proposal aligns with a recommendation from the RBI earlier this year to include CBDC interoperability on the agenda for the 2026 BRICS summit, which India will host on September 12-13. The BRICS group includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates, and Indonesia....