BRICS seeks cheaper payment mechanisms to side-step US dollar
BRICS is seeking practical ways to make trade between its members cheaper and faster, including through the greater use of national currencies and digital payment systems, ahead of the group's summit in New Delhi this week.
Discussions are ongoing on local-currency settlements and platforms involving central bank digital currencies (CBDCs), aimed at cutting transaction costs in bilateral trade and encouraging investment within the group, TASS reported, citing an Indian government source.
The proposed mechanisms would supplement, rather than replace, existing global payment and settlement systems, the report said, adding that the talks are “not aimed against any specific country or group of countries.”
The approach offers an alternative to creating a single BRICS currency, allowing businesses and banks to settle more transactions directly in national currencies and through interconnected payment networks, reducing reliance on the US dollar and multiple correspondent banks.
Indian Trade Minister Piyush Goyal has said New Delhi favors trade settlements in national currencies over a unified BRICS monetary system.
India’s central bank has been pushing the discussion forward. Reserve Bank of India (RBI) Governor Sanjay Malhotra said last month that BRICS members were considering linking their fast-payment systems as well as their CBDCs.
”Cross-border payments is an area of interest for all of us, including the BRICS, because we feel there is a lot of scope for reducing cost,” Malhotra said. He added that several options remained under discussion, including CBDCs and links between fast-payment systems.
Malhotra pointed to India’s Unified Payments Interface (UPI), a real-time domestic payment network, as an example of how quickly transactions can move. The RBI has also proposed that linking BRICS countries’ digital currencies be considered at this year’s summit.
The BRICS members already operate several robust domestic payment systems that could potentially be connected. India has UPI, RuPay, and its Structured Financial Messaging System; China operates the Cross-Border Interbank Payment System (CIPS) for yuan transactions; Russia uses its System for Transfer of Financial Messages (SPFS) and Mir card network; while Brazil runs the Pix instant-payment system.
A separate BRICS Business Council-backed initiative, BRICS Pay, has also explored ways to connect payment channels across member economies rather than build an entirely new financial system.
For India, the effort also fits into a broader push to internationalize the rupee. The RBI already has arrangements to promote local-currency trade with the UAE, Mauritius, the Maldives, and Indonesia, although Malhotra has said volumes remain relatively small.
The Indian government source cited by TASS said the work ahead of the summit remains focused on practical mechanisms to lower trade costs and deepen investment cooperation within BRICS, rather than replacing the existing international financial architecture.
