India Proposes CBDC & Digital Payments for BRICS Nations

India will propose the adoption of central bank digital currencies (CBDCs) and seamless cross-border digital payments among BRICS member states at the summit it hosts in New Delhi next month. The nation also aims to initiate discussions regarding more balanced trade within the BRICS grouping.

This BRICS summit, scheduled for September 12-13, will mark the global grouping’s 20th anniversary. A high-level meeting is planned for the coming week to finalize mechanisms for digital currency use and explore increasing intra-BRICS trade with national currencies.

Advancing Digital Transactions and Trade

These efforts are not directed against any other country, focusing instead on internal bloc efficiency. The meeting aims to clarify a path for a fast payment system that could reduce transaction costs for the 11-member grouping.

• BRICS 2025, under Brazil’s presidency, previously emphasized interoperability of payment systems among member nations.
• The Reserve Bank of India (RBI) is piloting its CBDC and examining its scope for cross-border digital transactions within BRICS.
• Global CBDCs remain in testing, with interoperability, requiring technology alignment, posing a key challenge.
• China, also a BRICS member, is concurrently conducting pilot programs for digital currencies.

Strengthening Customs and Supply Chains

The summit may also work towards implementing the BRICS Agreement on Cooperation and Mutual Administrative Assistance in Customs Matters. Members have given in-principle approval to sign this agreement.

• The customs agreement supports faster trade and lower transaction costs.
• It aims to enhance border security and facilitate trusted trade.
• Furthermore, it seeks to improve ease of doing business and combat illicit trade.

Additionally, cooperation on global value chains is on the agenda through an Action Plan for 2026-30. This includes a technical council and joint study to ensure resilient, efficient, and productive global value chains.