India and Russia discuss using digital currencies for cross-border trade

At the BRICS summit in New Delhi, Herman Gref, chief executive of Sberbank, revealed that the Russian central bank and the Reserve Bank of India are collaborating on a digital-currency settlement system for bilateral trade. Russia recently introduced its digital ruble through major banks, while India has been testing a digital rupee since 2022 and now uses it in select government schemes. The two countries aim to streamline payments as their trade, valued at almost $60 billion in fiscal 2026, continues to be dominated by Russian oil imports.

The proposal also seeks to address excess rupee balances held by Russian firms in Indian banks, which have been redirected into Indian securities. This effort aligns with the BRICS Payments Task Force’s push for faster, low-cost, and transparent cross-border transactions and broader BRICS financial reforms.