India's central bank, the Reserve Bank of India (RBI), has reportedly proposed linking the digital currencies of BRICS nations to facilitate smoother cross-border transactions. This initiative aims to streamline payments for trade and tourism within the bloc, potentially reducing reliance on the U.S. dollar amidst increasing geopolitical tensions.

The RBI has urged the Indian government to seek a formal agreement among BRICS members to connect their central bank digital currencies (CBDCs). According to sources familiar with the matter, the RBI has suggested including this proposal on the agenda for the 2026 BRICS summit, which India is scheduled to host. This would mark the first time a formal plan to link BRICS digital currencies is presented at a leaders' meeting.

BRICS, initially composed of Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the UAE. The proposal builds upon the 2025 BRICS summit declaration in Rio de Janeiro, which advocated for enhanced interoperability among member payment systems to improve cross-border transfer efficiency.

If the plan materializes, it would require consensus on interoperable technology, governance standards, and mechanisms to manage uneven trade flows.

India's digital currency, the e-rupee, launched in December 2022, has attracted approximately seven million retail users. To promote the e-rupee's adoption, the RBI has enabled offline transactions, introduced programmability for government subsidy payments, and authorized fintech firms to offer digital currency wallets. China has also expressed its intention to increase the international use of the digital yuan.

The RBI has previously signaled its interest in linking the digital rupee with other countries' CBDCs to expedite international payments and promote wider use of the rupee. However, the central bank has clarified that efforts to expand the rupee's global role are not intended to drive de-dollarization. While none of the BRICS nations have fully implemented a CBDC, the original five members are all engaged in pilot projects.

Responses to requests for comment from the involved central banks have varied. The People's Bank of China stated they had no information to share, while the South African central bank declined to comment. As of the time of reporting, the RBI, the Indian central government, and the central banks of Brazil and Russia had not responded.