What is RBI nudging India to do at BRICS? | Explained

Source: The Hindu | Original Published At: 2026-01-24 23:46:00 UTC

Key Points

• RBI proposes using Central Bank Digital Currencies (CBDCs) among BRICS nations for cross-border transactions during India's 2026 chairmanship.
• CBDCs offer blockchain-based transparency and immutability, potentially reducing money laundering and enabling programmable transaction controls.
• The initiative could benefit BRICS trade with countries excluded from SWIFT (e.g., Iran, Russia) by bypassing US dollar dependency.
• Challenges include complex multilateral regulatory alignment and potential US retaliation through increased tariffs on BRICS countries.
• India's proposal highlights BRICS' evolving role in reshaping global financial infrastructure through digital currency cooperation.