As the 2026 BRICS Summit approaches, India is set to encourage member nations to adopt Central Bank Digital Currencies (CBDCs) for streamlining cross-border payments. This initiative aims to reduce reliance on traditional banking channels and lower transaction costs, fostering more efficient trade among the bloc's diverse economies.
India's Vision for BRICS Payments
Prime Minister Narendra Modi, chairing BRICS this year, supports leveraging CBDCs for settling bilateral trade among member countries. This approach reflects a strategic move to enhance financial autonomy and resilience within the BRICS framework, which includes Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the United Arab Emirates.
Despite this push, New Delhi maintains a cautious stance on establishing a unified BRICS-wide payment settlement system. India is wary of creating a network that could be perceived as a direct rival to the globally dominant SWIFT system or be interpreted as an explicitly anti-dollar or anti-Western initiative. Instead, India proposes linking existing national CBDC systems to facilitate transactions.
Reducing Reliance on Traditional Systems
The broader BRICS agenda has increasingly focused on reducing dependence on Western-dominated financial networks, a sentiment amplified following the exclusion of several Russian banks from SWIFT after Russia's invasion of Ukraine in 2022. While India supports this goal, its method prioritizes incremental integration over a single, monolithic system.
Promoting Local Currency Trade
Beyond CBDCs, India also champions the increased use of local currencies for settling trade, moving away from a reliance on third currencies like the US dollar. This strategy has already seen significant adoption, particularly in trade with Russia. Approximately 96% of India's trade with Russia now utilizes rupee-ruble mechanisms, according to Sberbank India. Similarly, almost all trade between Russia and China is settled in yuan and rubles.
The Future of Digital Currencies in BRICS
Several BRICS nations are actively experimenting with their own digital currencies. India is currently piloting its digital rupee, while China and Russia are also progressing with their respective CBDC projects. Discussions at the upcoming summit in New Delhi may also explore connecting instant mobile payment systems for small-value retail transactions, further integrating digital financial infrastructure.
Ministry of External Affairs spokesman Randhir Jaiswal emphasized that India's approach to BRICS cooperation, including finance, is development-focused. He urged reporters to await the joint statement from the Finance Ministers-Central Bank Governors meetings, highlighting measures that support trade and economic ties as key objectives.