BRICS 2026: India Pushes CBDC-Based Cross-Border Payments
Why in the news
India is expected to use its BRICS presidency to press for smooth cross-border payments via central bank digital currencies, building on earlier pledges.
Key facts
- Presidency: India hosts the BRICS Summit later in the year.
- Core idea: interoperable CBDC settlement among member central banks.
- Base: the 2025 BRICS declaration backing payment interoperability.
- Benefit sought: direct, quicker, cheaper and safer cross-border transfers, without correspondent banks.
- Wider goal: less reliance on SWIFT and dollar settlement; stronger financial sovereignty for the Global South.
About BRICS
- Grouping aimed at economic cooperation, financial resilience and South-South collaboration.
- Members named: Brazil, Russia, India, China, South Africa, plus newly inducted countries.
CBDCs versus stablecoins
- Governor Malhotra (Washington DC, November 2025): CBDCs are sovereign-backed, regulated and steadier.
- Stablecoins: often private, risky for monetary sovereignty and financial stability.
Exam angle
- Link between BRICS presidency and CBDC agenda.
- Term check: DPI, interoperability, financial sovereignty.
- RBI Governor’s stance: CBDC over stablecoin.