India to Promote Cross-Border Digital Payments and CBDC Adoption at BRICS Summit

The global grouping celebrates 20 years at the New Delhi summit on September 12-13. A high-level meeting would be held next week to thrash out mechanisms for use of digital currencies, and explore ways to increase intra-BRICS trade using national currencies, said the people mentioned above.

NEW DELHI: India is likely to pitch seamless cross-border digital payments, and adoption of central bank digital currencies (CBDCs) among BRICS member states at the summit it would host next month, people familiar with the deliberations told ET. New Delhi is also keen on discussions around the need for more balanced trade within BRICS, said the people cited above.

A final call on inclusion of issues for deliberations by summit leaders would be taken shortly.

The global grouping celebrates 20 years at the New Delhi summit on September 12-13.

A high-level meeting would be held next week to thrash out mechanisms for use of digital currencies, and explore ways to increase intra-BRICS trade using national currencies, said the people mentioned above.

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This will, however, not be targeted against any other country.

The meeting is expected to provide clarity on the way forward on the mechanism for fast payment system linkages that could be adopted at the BRICS Summit.

New Delhi is also focusing on mechanisms to reduce transaction costs involved in the trade of the 11-member grouping.

Interoperability Key Issue

BRICS 2025 under Brazil's presidency had emphasised on interoperability of payment systems among member nations to make cross-border transactions easier in the declaration that was adopted.

RBI, which is running a pilot for CBDC, is examining the scope to push cross-border digital transactions within BRICS.

Full-fledged digital currencies are yet to be launched with countries testing various aspects such as uses, applications, and safety. One of the key issues is interoperability that will require aligning technology.

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Countries including China, a BRICS member, are running pilots for digital currencies.

The summit could also work on realizing the BRICS Agreement on Cooperation and Mutual Administrative Assistance in Customs Matters. Members confirmed their in-principle approval and willingness to sign the agreement to support faster trade, lower transaction costs, secure borders further, facilitate trusted trade, improve ease of doing business and tackle illicit trade. On the agenda is also cooperation on global value chains through Action Plan 2026-30, including a technical council and joint study for enhanced cooperation to ensure global value chains are resilient, efficient and productive.