New Delhi: India is preparing a major proposal for BRICS that could make cross-border trade easier through local currencies and reduce the need for transactions to pass through the US dollar or American banking channels.
As BRICS chair in 2026, India is expected to push for greater interoperability between the digital payment systems of member countries at the BRICS summit in New Delhi on September 12 and 13. The proposal could include linking fast payment platforms and exploring wider use of central bank digital currencies.
At the centre of the plan is a possible technical bridge connecting existing domestic payment networks. India has explored interoperability between systems such as UPI and Brazil’s Pix, along with digital currencies including the e-rupee, digital yuan, digital ruble and Brazil’s Drex.
Such a framework could enable participating countries to settle eligible transactions directly in their national currencies, potentially making payments faster, cheaper and less dependent on conventional international banking channels.
India has made clear that the proposal does not involve creating a new BRICS currency. Instead, the focus is on expanding payment options and supporting greater use of national currencies in trade.
Two broad approaches are being examined. One involves linking existing fast payment systems, while the other focuses on making different central bank digital currencies interoperable. Technical compatibility, security and the different stages of digital currency development among BRICS members remain major challenges.
The summit is also expected to discuss ways to increase intra-BRICS trade, lower transaction costs and improve customs cooperation. Members are considering an agreement aimed at facilitating faster trade, strengthening border security and tackling illicit commerce.
India’s approach is being presented as economic diversification rather than an effort to directly challenge the dollar. A more integrated payment network could help reduce exposure to dollar liquidity pressures, international banking bottlenecks and settlement risks.
The digital payment initiative is part of India’s broader BRICS agenda, which also includes trade cooperation, artificial intelligence and reforms in global governance. The September summit will be a key platform for members to consider the future of local-currency settlements and digital financial connectivity.
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