India pushes CBDC use for BRICS trade while rejecting a unified payments network

India, presiding over the upcoming BRICS leaders’ summit, intends to promote the use of central bank digital currencies for bilateral trade settlements among the five members, according to sources familiar with the talks. Prime Minister Narendra Modi favors expanding CBDC transactions but stops short of endorsing a single, bloc-wide payments network that could be interpreted as a challenge to the dollar-dominant SWIFT system.

Instead, the plan emphasizes linking each country's CBDC and settling trade in national currencies, a trend already evident in the high share of rupee-ruble and yuan-ruble transactions. The Reserve Bank of India, which is piloting a digital rupee, joins China and Russia in experimenting with their own digital currencies. Officials also hinted that leaders may discuss interconnecting instant mobile payment platforms used for small retail payments.

India has recently linked its one outlet system with Singapore’s PayNow and signed agreements with several Asian central banks to use local currencies for trade. The approach is presented as development-focused, aiming to reduce reliance on external payment networks and conserve dollar reserves.