BRICS nations discussing possibility of linkages between their fast payment systems

Mumbai, Aug 12: Cross-border payments remain an area of interest for BRICS member countries, including India, and they are discussing possible linkages between their fast payment systems and central bank digital currencies (CBDCs), Reserve Bank of India Governor Sanjay Malhotra said.

Speaking at an event in Mumbai, Malhotra said discussions cover multiple options to improve payment connectivity.

The proposals, however, are still at the discussion stage, he said on Tuesday.

The options under consideration include linking fast payment systems operated by member countries and exploring the role of CBDCs in cross-border transactions. Malhotra said the objective is to improve efficiency and bring down the costs associated with international payments.

The BRICS grouping comprises Brazil, Russia, India, China and South Africa, plus some other countries.

India is hosting the 2026 BRICS summit, with cross-border payments among the areas being discussed by the grouping.

Malhotra said the RBI will also continue its efforts to internationalise the Indian rupee and encourage greater use of local currencies for cross-border payments and trade. Such efforts are aimed at expanding alternatives for international transactions.

RBI for AI Adoption

Separately, the RBI governor said Indian banks need to actively adopt artificial intelligence while establishing safeguards to manage the risks associated with its use. He said AI should be treated as a capability that can be harnessed rather than only as a risk to be contained.

Malhotra urged banks to maintain an inventory of all AI models being used across their operations and establish board-approved AI governance policies. The move would help lenders identify how AI is being deployed and strengthen oversight of the technology.

Central banks and financial regulators globally have been examining banks’ use of AI amid concerns over cyberattacks, operational disruptions and governance risks. The rapid adoption of AI has also increased the need for institutions to establish clear accountability around its deployment.

Malhotra said innovation and safety should be pursued together as part of building a durable financial system. He added that the two objectives should not be viewed as opposing requirements as banks expand their use of emerging technologies. (BVI)