India Proposes BRICS Digital Currency Linkage for 2026 Summit

Reserve Bank of India Governor Sanjay Malhotra announced that BRICS members are discussing the linkage of fast payment systems and central bank digital currencies (CBDCs) to reduce the cost of cross-border payments. Speaking at an event in Mumbai on Tuesday, Malhotra stated that while these options remain in the discussion stage, the Reserve Bank of India has recommended adding a CBDC connection proposal to the agenda for the 2026 BRICS summit, which India will host.

The central bank intends to continue promoting local currencies for trade and internationalizing the rupee. Malhotra emphasized that reducing costs in cross-border payments is a shared interest among BRICS nations.

In a separate directive, Malhotra urged Indian banks to inventory their AI models and adopt board-approved AI governance policies. He argued that innovation and safety are complementary requirements for a durable financial system, asserting that Indian banks cannot afford to remain on the sidelines of technological advancement.