India is set to push a proposal to link central bank digital currencies (CBDCs) across BRICS nations at the upcoming summit in New Delhi, according to a Reuters report. The proposal comes as India chairs BRICS this year, with leaders of the expanded 11-member grouping scheduled to meet in New Delhi on September 12 and 13. The Reserve Bank of India had proposed linking members' official digital currencies earlier this year, with the plan potentially allowing countries to use their respective CBDCs for bilateral trade settlements, potentially reducing payment costs and reliance on traditional banking channels. However, officials expect the proposal to face both technical and political challenges, as creating a functioning CBDC network would require countries with different financial systems and regulatory frameworks to agree on common technical standards. RBI Governor Shaktikanta Das confirmed on August 11 that cross-border payments is an area of interest for BRICS, stating that various options including CBDCs and fast payment system linkages are still at discussion stage. Commerce and Industry Minister Piyush Goyal reinforced this push at the Brics Business Forum, urging members to link payment systems and trade in each other's local currencies.
Union Commerce and Industry Minister Piyush Goyal on Friday called on BRICS member states to open their markets to each other and address non-tariff barriers, speaking at the BRICS Business Forum in New Delhi. According to Business Standard, Goyal said trade among partner countries should be "deep, resilient, with diversified supply chains," and should never become an impediment to growth or the well-being of citizens in member states. He emphasized that "We should open our markets for each other's products, including for raw materials and critical minerals. Our supply chains will be resilient when they run both ways." Goyal noted that non-tariff measures were imposing significantly higher export costs than tariffs for 88% of countries, and urged BRICS members and partner countries to simplify regulatory procedures and speed up clearance of consignments. He urged BRICS nations to link payment systems, trade in local currencies, and build shared capabilities in agriculture, pharmaceuticals, engineering, electronics, automobiles and startups. Goyal highlighted India's strong capabilities across sectors including agriculture, pharmaceuticals, engineering, electronics, automobiles and auto components and services, and called for linking startup ecosystems as well.
India has publicly rejected the idea of a common BRICS currency, with Commerce and Industry Minister Piyush Goyal stating on August 29 that India does not support the introduction of any such BRICS currency scheme. Speaking after the conclusion of a two-day BRICS trade and industry ministers meeting in Jaipur, Goyal emphasized that "India is not in favour of a BRICS currency. We do not support the introduction of any such BRICS currency scheme; India opposes it." This stance comes after Trump's January 2025 threat to impose 100% tariffs on BRICS members if they created a common currency or backed another currency designed to replace the dollar. As reported by The Economic Times, India had been distancing itself from the common currency idea well before Goyal's August comments, with External Affairs Minister S Jaishankar stating on December 7, 2024, that BRICS countries had no interest in weakening the US dollar. Despite seeking greater international use of the rupee, New Delhi and the RBI maintain that these efforts are not aimed at de-dollarisation. The Brics nations had three years ago envisaged a common currency for trade settlement, but the idea has taken a back seat following US President Donald Trump's opposition and tariff threats.
India has integrated its Unified Payments Interface (UPI) with 11 countries globally and aims to expand it further, as confirmed by Commerce Minister Piyush Goyal at the Brics Business Forum. Among BRICS members, India has integrated UPI with the United Arab Emirates' (UAE's) fast payment system Aani and has explored settlement of trade in local currency with Russia. Goyal highlighted India's digital public infrastructure as a model for the bloc, pointing to the Unified Payments Interface, which he said now processes over 250 billion transactions annually — more than half of global transaction volume by count — and is already accepted in 11 countries. Goyal urged Brics members to make digital trade global and build together for the future of emerging technologies, emphasizing the importance of alternative trade settlement options. Russia's Minister of Economic Development Maxim Reshetnikov revealed that Russia has restructured its trade over the past three years, now settling the majority of its exports with partner countries in local currencies. As Reshetnikov explained at the summit, "Three years ago, dollar and euro accounted for 85 per cent of export settlements for Russia. The figure now stands at 11 per cent." Russia prepared a detailed plan to establish the Brics Green Exchange: a unified trading platform where producers, traders and buyers can conclude transactions directly, with Russia calling for partner feedback on this initiative.
The BRICS bloc — which includes China, Russia, India and South Africa — has been working toward linking members' payment systems in ways that could reduce reliance on the global SWIFT network, which is dominated by Western nations. The initiative gained attention after several Russian banks were cut off from SWIFT following Russia's invasion of Ukraine in 2022. Creating a functioning CBDC network would require countries to make their different digital-currency systems interoperable and agree on technology, governance, regulation and how transactions are ultimately settled. According to The Economic Times, reluctance among countries to adopt technological platforms developed elsewhere could delay progress, with concrete movement requiring consensus on both technology and regulation. Bilateral foreign-exchange swaps between central banks are among the mechanisms being explored to deal with trade imbalances, with sources suggesting that weekly or monthly settlements through swaps are also being considered. Russia's Kremlin spokesperson Dmitry Peskov confirmed on September 8 that 90% of transactions between Russia and BRICS nations are being conducted in national currencies, though some countries are using their national currencies as political tools.
India has paused Alipay+'s proposal to connect with UPI for cross-border payments, citing national security and data-storage concerns. The proposal, submitted in January 2026, marked the first such approach by a China-linked entity in India's financial services sector and was put forward as relations between India and China have shown signs of easing since a border clash in 2020. According to sources cited by Reuters, India's concerns centre on Alipay+'s Chinese ownership links, the storage and handling of customer data, and the potential for misuse of that data. Indian law enforcement agencies have flagged risks relating to money laundering and data breaches that could expose customers to cyberfraud. A third source said that while checks on data processing, storage, and dispute resolution apply to all bilateral cross-border payment programmes, scrutiny is markedly higher for entities with ties to China. The stalled Alipay+ proposal comes ahead of Chinese President Xi Jinping's expected visit to New Delhi later this month for a BRICS summit, seen by observers as part of broader efforts to stabilise bilateral ties.
If agreed, the CBDC network initiative could become one of the most significant financial cooperation proposals at India's BRICS presidency. For countries such as India, more trade in local currencies can provide a buffer against volatile global capital flows, according to Sonal Varma, a Singapore-based economist at Nomura Holdings Inc. "Local-currency settlement can help conserve scarce dollar reserves for strategic imports while enabling routine trade financing in local currency," she said. Goyal further called for deeper cooperation among Brics nations across trade, mobility and investment, urging members to open their markets for each other's products and work together to simplify regulatory procedures. "We should open our markets for each others' products, including for raw materials and critical minerals. Our supply chains would be more resilient if they run both ways," Goyal emphasized. The outbound cross-border payments market for the Asia-Pacific region is projected to reach USD 23.8 trillion by 2032, according to data provider FXC Intelligence, nearly double the figure recorded in 2024. Despite geopolitical challenges, the BRICS bloc continues to explore ways to reduce reliance on Western financial systems while maintaining its focus on cross-border trade facilitation and financial cooperation among member nations.
