Now Reading: RBI explores CBDCs and payment links for cheaper cross-border transfers
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RBI explores CBDCs and payment links for cheaper cross-border transfers
RBI explores CBDCs and payment links for cheaper cross-border transfers
RBI Governor Sanjay Malhotra said on Tuesday the central bank is exploring central bank digital currencies (CBDCs) and payment-system linkages to reduce the cost and speed of cross-border retail payments. Speaking at…
The Story in Brief
RBI Governor Sanjay Malhotra said on Tuesday the central bank is exploring central bank digital currencies (CBDCs) and payment-system linkages to reduce the cost and speed of cross-border retail payments. Speaking at the FIBAC conference in Mumbai, he noted that domestic payments via UPI are instantaneous and questioned why foreign remittances still take hours or days. He said BRICS countries are working together on this, with a proposal to discuss CBDC linkages at the 2026 BRICS summit that India will chair. The RBI has signed MoUs with four countries, UAE, Mauritius, Maldives, and Indonesia, to promote local currency trade, and is working to internationalise the rupee.
The Indian Opinion
The RBI’s push for CBDCs and payment-system linkages to slash cross-border costs is sensible, but the framing as a BRICS agenda item risks being read as a geopolitical gambit. Whether this is about efficiency or de-dollarisation is a distraction. The real test is simple: can the RBI bring the cost of a ₹10,000 retail remittance from today’s 6-8% down to UPI-level near-zero fees? Until that number moves, the architecture talk is just talk.
Source: bfsi.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
