Archive · 10 Sep 2026
India Pushes Central Bank Digital Currencies for BRICS Payments
India wants BRICS countries to connect their digital currencies for trading with one another.
These digital currencies would be issued or supported by central banks.
India believes this could make payments cheaper and reduce the need for banks.
It also wants countries to use their own currencies instead of relying on the dollar.
India does not appear to support creating one large BRICS payment network.
Such a network could be seen as competing with SWIFT or challenging Western financial systems.
BRICS countries became more interested in alternative payment arrangements after some Russian banks lost access to SWIFT.
India, China and Russia are testing their own digital currencies.
India has also connected its UPI payment system with Singapore’s PayNow for remittances.
India plans to promote linking members’ central bank digital currencies for bilateral trade payments.
New Delhi is unlikely to support a unified BRICS-wide payments network that could challenge the dollar or rival SWIFT.
The proposed links could reduce reliance on banks, lower costs and expand local-currency trade settlement.
About 96% of India’s trade with Russia reportedly uses rupee-ruble mechanisms, while Russia-China trade is mostly settled in yuan and rubles.
India, China and Russia are testing digital currencies, and India has linked its UPI system with Singapore’s PayNow.
- Who
- India, Prime Minister Narendra Modi and other BRICS members, including China, Russia and South Africa.
- What
- India is expected to promote linking central bank digital currencies for cross-border and bilateral trade payments.
- When
- The proposal is expected to be discussed at the BRICS leaders’ summit in New Delhi this weekend; India is chairing BRICS this year.
- Where
- Among BRICS countries, with related meetings and the leaders’ summit taking place in New Delhi.
- Why
- To reduce reliance on banks and dollar-based payment arrangements, lower transaction costs and promote local-currency trade settlement.
Linked National Digital Currencies
Unified BRICS Payments Network
Payment structure
Linked National Digital Currencies
India favors connecting members’ separate central bank digital currencies for bilateral transactions while preserving national systems.
Unified BRICS Payments Network
A unified bloc-wide network would more directly integrate BRICS payment systems, but the reports say such an agreement is unlikely at the upcoming summit.
Geopolitical positioning
Linked National Digital Currencies
Indian officials describe the approach as development focused and intended to support trade and economic ties.
Unified BRICS Payments Network
A unified system could be viewed as a rival to SWIFT and as evidence that BRICS is explicitly challenging the dollar or Western financial systems.
- India’s proposal
- Link BRICS members’ central bank digital currencies for cross-border transactions.
- Unified network
- An agreement on a single BRICS-wide payments settlement system at the upcoming summit is considered unlikely.
- Local-currency trade
- About 96% of India’s trade with Russia reportedly uses established rupee-ruble mechanisms.
- Digital currency pilots
- India’s digital rupee is in pilot testing, while China and Russia are also experimenting with central bank digital currencies.
- Existing payment connection
- India’s Unified Payments Interface is connected with Singapore’s PayNow for remittances.
- Other trade agreements
- India has agreements involving local-currency trade with the United Arab Emirates, Mauritius, Maldives and Indonesia.
- Stated economic rationale
- Economist Sonal Varma said local-currency settlement could conserve dollar reserves for strategic imports while supporting routine trade financing.
