BRICS members are discussing potential links between their fast payment systems and central bank digital currencies, Reserve Bank of India Governor Sanjay Malhotra said in Mumbai. The talks remain at an early stage, with the aim of cutting the cost of cross-border payments among the bloc. Malhotra also urged Indian banks to build board-approved AI governance policies.
Members of the BRICS group of nations are discussing potential linkages between their respective fast payment systems and central bank digital currencies, Reserve Bank of India Governor Sanjay Malhotra said at an event in Mumbai on Tuesday. The BRICS organisation includes Brazil, Russia, India, China and South Africa, among others, and India is hosting the 2026 edition of the group's annual summit.
Cross-border payments are an area of interest for all BRICS members because of the scope for reducing costs, Malhotra said. According to Reuters: Malhotra said "Various options are on the table, but it is still at discussion stage", referring to CBDC links and fast-payment-system connections among the bloc's members.
Reuters had earlier reported this year that the RBI recommended to the government that a proposal to connect CBDCs be included in the agenda for the 2026 BRICS summit. Malhotra said the central bank will also continue its efforts to internationalize the rupee and promote the use of local currencies for cross-border payments and trade, alongside the discussions over linking BRICS payment infrastructure.
At the same event, Malhotra said the RBI sees artificial intelligence as a capability to be harnessed rather than just a risk to be contained. He urged lenders to inventory all AI models in use and establish board-approved AI governance policies, saying Indian banks cannot afford to sit on the sidelines and watch. Central banks globally have been paying close attention to lenders' use of AI amid worries over cyberattacks alongside operational and governance risks, and Malhotra said innovation and safety are complementary requirements of a durable financial system.
Source: Forex News
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