BRICS members discussing payment systems, digital currency connectivity, India's central bank chief says

BRICS member states are exploring potential connectivity between their fast payment systems and central bank digital currencies, with options including both systems integration and digital currencies under discussion, Reserve Bank of India Governor Sanjay Malhotra said on Tuesday.

News ID: 2003616

Malhotra said at an event in Mumbai that cross-border payments are an area of interest for all BRICS members, as they see significant potential for cost reduction. Options under consideration include central bank digital currencies and connectivity of fast payment systems, though they remain at the discussion stage. Reuters reported earlier this year that the RBI had advised the government to propose CBDC connectivity at the 2026 BRICS summit.

India is hosting this year's BRICS summit, with member states including Brazil, Russia, India, China, South Africa, and other countries.

Malhotra added that the RBI will continue its efforts to internationalize the rupee and promote the use of local currencies for cross-border payments and trade.

Responsible use of AI

The central bank chief also said the RBI views AI as a capability to be harnessed, not just a risk to be contained. He urged lenders to inventory all AI models in use and establish board-approved AI governance policies, saying banks cannot sit on the sidelines and watch.

Central banks worldwide have been closely scrutinizing lenders' use of AI amid concerns over cybersecurity, operational risks, and governance issues. Malhotra said innovation and safety are not opposing goals but complementary requirements of a stable financial system./tasnim