Sanjay Malhotra, Governor of the Reserve Bank of India (RBI), announced that BRICS countries are holding talks on connecting their instant payment systems and central bank digital currencies (CBDCs). He made the remarks at an event in Mumbai.
The BRICS group includes Brazil, Russia, India, China and the Republic of South Africa. India will host the 2026 annual summit, and connecting CBDC systems had previously been suggested: Reuters reported earlier this year that the RBI proposed to the Indian government that CBDC interlinking be added to the 2026 BRICS summit agenda.
Focus of the negotiations
Malhotra said improving cross‑border payments is a priority for all member states because there is significant scope to reduce costs. Several options are under consideration, but the initiative remains in negotiation stage; proposals include connecting digital central bank currencies and building “bridges” between instant payment systems.
Rupee internationalization and use of local currencies
Malhotra reaffirmed that the RBI will continue efforts to internationalize the rupee and promote the use of local currencies for cross‑border payments and trade. These measures aim to lower transaction costs and enhance the efficiency of payment infrastructure among BRICS countries.
Artificial intelligence: opportunity and governance
At the same event, the governor addressed financial applications of artificial intelligence (AI). He said the RBI views AI primarily as an opportunity to be leveraged rather than merely a risk to be managed. He urged Indian banks not to fall behind, to take inventory of all deployed AI models, and to develop AI governance policies approved by their boards.
Malhotra stressed that innovation and security are not opposing goals but complementary requirements for a sustainable financial system.
Source: Reuters. Cover image is illustrative; image source: Getty Images. An AI assistant contributed to the article’s preparation; the final content was edited and verified by our journalist.
