RBI Governor: Central Banks Crucial for Global Financial Stability

Reserve Bank of India Governor Sanjay Malhotra emphasized the critical role of central banks in maintaining price and financial stability during the recent BRICS Finance Ministers and Central Bank Governors’ meeting held in Jaipur on August 12-13, 2026.

Malhotra stressed that collaboration among central banks is fundamental for building a global financial system that is resilient, efficient, and inclusive for all.

Fostering Global Financial Resilience

The Governor specifically commended various central bank workstreams for their ongoing efforts to enhance financial stability.

• Information security
• Fintech advancements
• Cross-border payments
• Sustainable finance initiatives
• Capacity building
• The Contingent Reserve Arrangement

The meeting itself was notably co-chaired by India’s Finance Minister alongside the RBI Governor.

Streamlining Cross-Border Transactions

Earlier in the week, Governor Malhotra had revealed that BRICS nations are actively exploring strategies to reduce costs and enhance the speed of cross-border payments.

• Linking diverse payment systems
• Utilizing Central Bank Digital Currencies (CBDCs)

He clarified that while these critical initiatives are currently in progress, they remain at the discussion stage.

Boosting Local Currency Trade

Malhotra also highlighted India’s existing local currency trade with several nations, although the current volumes are modest.

To further promote local currency usage, the Reserve Bank of India has forged Memoranda of Understanding with the central banks of key partners.

• United Arab Emirates (UAE)
• Mauritius
• Maldives
• Indonesia

The RBI anticipates signing additional such agreements in the near future, signaling a strategic push towards broader adoption of local currencies in international trade.