BRICS Members Explore CBDC, Fast Payment System Linkages For Cheaper Cross-Border Transactions: RBI Governor

New Delhi, Aug 11 (KNN) Members of the BRICS grouping are discussing possible linkages between their fast payment systems and central bank digital currencies (CBDCs) to reduce the cost of cross-border payments, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Tuesday.

Speaking at an event in Mumbai, Malhotra said, “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,” Reuters reported.

“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.

Focus on Cross-Border Payments

Malhotra said the RBI will continue efforts to internationalise the Indian rupee and promote the use of local currencies for cross-border payments and trade.

India is hosting the 2026 BRICS summit, with discussions on strengthening financial connectivity among member countries forming part of the broader economic cooperation agenda.

RBI Sees AI as an Opportunity

The RBI governor also noted that the central bank views artificial intelligence (AI) as a capability that the financial sector should harness rather than only a risk to be controlled.

“Indian banks cannot afford to sit on ‌the sidelines and watch,” he said, urging Indian banks to take a more proactive approach to AI adoption by maintaining an inventory of all AI models in use and establishing board-approved governance frameworks.

Balancing Innovation and Financial Stability

Malhotra emphasised that financial institutions need to manage the operational, governance and cybersecurity risks associated with AI while continuing to pursue innovation.

“Innovation and safety are ‌not opposing goals, they are in fact complementary requirements of a durable financial system,” he ​added.

(KNN Bureau)