Beyond the Dollar: How BRICS Is Rewriting Cross-Border Payments and What India Stands to Gain
By NiraDha News Editorial Team
September 8, 2026
The World of International Payments Is Beginning to Change
For generations, the United States dollar has stood at the centre of the international financial system. It has been used extensively for global trade, international investment, commodity transactions, foreign-exchange settlements and central-bank reserves, giving the United States an influence over global finance that extends far beyond the size of its domestic economy. Countries do not necessarily use the dollar because they want to depend on Washington; in many cases, they use it because the currency is deeply established, highly liquid and widely accepted. A company in one country can trade with a company in another country even when their own currencies are difficult to exchange directly, because the dollar can function as the bridge between them.
That system, however, is slowly becoming more diverse. The change is not happening through one dramatic announcement, nor is it simply a campaign to eliminate the dollar from international trade. Instead, countries are increasingly looking for additional ways to move money across borders without depending on a long chain of intermediaries or converting every transaction through the same international currency. BRICS has become one of the most important platforms for this conversation, and as India hosts the 2026 BRICS summit, the discussion around national currencies, interconnected payment systems and central bank digital currencies has moved closer to the centre of the global economic debate. BRICS finance officials are expected to discuss greater use of national currencies for cross-border settlements and ways to strengthen financial cooperation among member countries. The Financial Express
For India, this development is particularly significant because the country already possesses one of the world's most advanced domestic digital-payment infrastructures. India's Unified Payments Interface, better known as UPI, has demonstrated that a fast, interoperable payment system can operate at enormous scale. The question now is whether some of the principles behind India's domestic payment revolution can be extended internationally, allowing Indian businesses, travellers and workers to conduct cross-border transactions more easily and potentially reducing the cost of moving money between countries.
BRICS Is Not Simply Trying to Create a New Currency
One of the biggest misunderstandings surrounding the BRICS financial agenda is the belief that the group is preparing to launch a single currency that will replace the US dollar. The reality is considerably more complicated. India has not supported the creation of a common BRICS currency, and the current discussions are much more focused on improving the infrastructure through which existing national currencies can be used in international transactions.
The distinction matters because creating a common currency would require BRICS members to agree on an extraordinarily complex monetary framework despite having very different economies, inflation rates, financial systems, exchange-rate policies and political priorities. Brazil, Russia, India, China, South Africa and the group's newer members do not operate under a single economic policy, and their interests are often different. A common currency would therefore require a level of economic and political integration that BRICS currently does not possess.
Connecting payment systems is a very different proposition. Each country can keep its own currency and its own monetary policy while working toward mechanisms that allow payments to move more efficiently between national systems. The Reserve Bank of India has said that BRICS members are discussing possible links between their fast-payment systems and central bank digital currencies, although the proposals remain at the discussion stage rather than representing a fully operational BRICS-wide system. Investing.com
This approach is far more practical. Instead of asking whether the dollar should disappear, the discussion is increasingly about whether countries should have more choices when they conduct international transactions.
Why Cross-Border Payments Have Become Such an Important Issue
Sending money from one country to another may appear simple on a smartphone, but behind the screen there can be a complicated chain of banks, payment networks, currency conversions and compliance checks. When two banks do not have a direct relationship, correspondent institutions may be involved in transferring and settling the funds. Each additional participant can introduce fees, processing requirements and delays.
Currency conversion can make the process even more complicated. If two countries do not have a sufficiently liquid direct market between their currencies, a third currency can act as an intermediary. In many international transactions, the US dollar has historically performed this role because of its enormous liquidity and global acceptance. The result is that a transaction between two countries may involve more financial steps than the people or businesses making the payment realise.
BRICS discussions are therefore focusing on whether technological connectivity can make these transactions more direct. If national payment systems can communicate with each other and if appropriate arrangements are created for currency conversion and settlement, international payments could become faster and less expensive without requiring countries to abandon their own currencies.
This is why the current debate should be understood primarily as a discussion about financial infrastructure, rather than simply a political campaign against the dollar.
India Has an Advantage That Many Other Countries Do Not
India enters this conversation with something valuable: experience.
Over the last decade, UPI has transformed the way millions of Indians make everyday payments. The system allows customers to transfer money between participating banks and payment applications through a common interoperable framework, meaning that users do not have to be on the same banking application or closed payment network to transact with one another.
The scale is extraordinary. UPI processed 24.51 billion transactions worth ₹29.82 trillion in August 2026, according to the latest figures cited by Reuters, making it the world's largest retail fast-payment system by transaction volume. UPI is already operational in 11 countries, including Singapore, the United Arab Emirates, France and Nepal. Prime Minister Narendra Modi said on September 8 that India should continue connecting UPI with payment systems in more countries, particularly those with strong trade relationships and large Indian communities. Reuters
This gives India an opportunity that goes beyond simply promoting the rupee. India can potentially export the infrastructure and standards that have made its domestic payment system successful.
If another country's payment network can connect securely with UPI, an Indian traveller could potentially pay abroad more easily, an overseas Indian could potentially send money home with less friction, and an Indian business could potentially receive or make international payments through more efficient digital channels.
UPI Could Become an Instrument of Economic Diplomacy
India's digital-payment success is increasingly becoming part of its international economic strategy. The government has already promoted UPI's expansion in several countries, and the Reserve Bank of India has also expressed support for greater internationalisation of the rupee and wider use of local currencies for cross-border payments and trade.
This creates an interesting form of economic influence. Traditional economic diplomacy has often been associated with trade agreements, loans, infrastructure projects and investment. Digital payment infrastructure offers another route. A country whose payment system becomes widely accepted can become deeply connected to the everyday economic activity of other countries.
The significance of this becomes clearer when considering the Indian diaspora. Millions of Indians live and work abroad, sending money to families in India and travelling frequently between countries. Lower-cost and faster payment links could reduce friction in these transactions. Prime Minister Modi has specifically argued that broader international integration of UPI could help reduce remittance costs and make payments more convenient for Indians living overseas. Reuters
In that sense, UPI could become more than a domestic success story. It could become part of India's broader international financial infrastructure.
The Russia-India Experience Shows Why Local Currencies Matter
The growing use of national currencies is not merely an abstract BRICS proposal. India and Russia have already moved significantly toward settling bilateral trade in their own currencies, particularly as geopolitical restrictions have complicated access to traditional Western financial channels.
The experience has demonstrated both the advantages and the difficulties of local-currency trade. When businesses can settle transactions directly in rupees and roubles, they can reduce their dependence on dollar-based settlement for those specific transactions. But the system also creates practical questions about how trade imbalances are managed, how accumulated currencies can be used and how businesses can convert them when necessary.
This is precisely why a successful international payment architecture requires more than a political decision to use national currencies. It needs reliable settlement mechanisms, sufficient liquidity, transparent foreign-exchange arrangements and trusted financial institutions.
The BRICS conversation is gradually moving toward these practical questions.
Russia Says It Is Open to Payment Options
The current discussion also shows why the term "de-dollarisation" can sometimes be misleading.
On September 8, Kremlin spokesperson Dmitry Peskov said Russia does not seek "de-dollarisation" and remains open to acceptable methods of payment. His comments came just days before the BRICS leaders' summit in New Delhi and suggest that even countries that have dramatically expanded local-currency trade are not necessarily calling for the complete removal of the dollar from international finance. Reuters
This is an important point for understanding where BRICS is heading.
The emerging model is not necessarily a financial world without dollars. It could instead be a world where countries have more options. If a dollar transaction is efficient and commercially useful, businesses can continue using it. If a rupee-rupee, rupee-ruble or other local-currency settlement is more convenient, that route can be used instead.
The objective is therefore increasingly about choice, resilience and efficiency.
What India Could Gain From a More Connected BRICS Payment System
For India, the potential benefits are considerable. The first is the possibility of reducing transaction costs for businesses engaged in international trade. If payments can move through more direct channels, companies may spend less on intermediary fees and currency conversions.
The second benefit could be faster settlement. International transactions can involve different banking hours, multiple institutions and various compliance processes. Better-connected payment networks could potentially reduce these delays and make trade more efficient.
The third benefit is the potential internationalisation of the rupee. The more frequently India's currency is accepted for trade and settlement, the more useful it becomes outside India's borders. This does not mean that the rupee would suddenly challenge the dollar as the world's dominant reserve currency, but greater international use could strengthen India's financial autonomy and reduce dependence on third-country currencies in selected trade corridors.
The fourth potential benefit is strategic. A country with its own strong payment infrastructure has greater freedom in how it conducts international economic relations. India's ability to participate in multiple financial systems while maintaining its own infrastructure fits closely with its broader approach of strategic autonomy.
The New Development Bank Could Add Another Dimension
The BRICS financial discussion is not limited to payment systems. The New Development Bank, created by the group to finance infrastructure and sustainable-development projects, is also expected to receive attention during India's 2026 BRICS chairship.
According to current reporting ahead of the summit, BRICS finance officials are considering ways to increase the role of national currencies and strengthen the New Development Bank's ability to mobilise private capital. The broader objective is to make BRICS economies more resilient to international financial shocks and improve access to development financing. The Financial Express
This could eventually create a broader ecosystem in which trade, investment, development finance and payment infrastructure reinforce one another.
For India, such an ecosystem could be valuable because the country is simultaneously seeking stronger domestic economic growth, greater integration with global markets and more autonomy in international finance.
China's Role Makes the Question More Complicated
China is one of the most important members of BRICS and one of the world's largest trading economies. It also has its own major financial infrastructure and a strong interest in increasing the international use of the yuan.
That creates both an opportunity and a challenge for India.
Greater payment connectivity with China could potentially make bilateral trade easier. But India has also demonstrated that financial connectivity cannot be separated from national-security and data-protection considerations.
A recent example is India's decision to stall a proposed connection between UPI and Alipay+, citing security and data-related concerns. Reuters reported that Indian authorities were concerned about the potential handling of transaction data, cyber-fraud risks, money laundering and the Chinese links of the platform. Reuters
This episode is important because it demonstrates that India wants greater international payment connectivity, but not at any cost. New Delhi is likely to insist that international financial integration must operate within India's security, regulatory and data-protection framework.
The Technology Is Only One Part of the Problem
It is tempting to believe that connecting payment systems is simply a matter of writing software that allows one network to communicate with another. In reality, technology is only one part of the challenge.
Countries must agree on regulatory standards, data protection, cybersecurity, consumer protection, foreign-exchange rules and methods for resolving disputes. Banks and payment providers must know which institution is responsible when a transaction fails, a customer claims fraud or a payment is made incorrectly.
There is also the question of currency liquidity. A digital payment can be transferred instantly, but the underlying currencies still need to be valued and settled. If there is insufficient liquidity between two currencies, the payment system alone cannot solve the economic problem.
Trust is equally important. International financial infrastructure works only when participating countries believe that the rules will remain stable and that the system will be protected against cyberattacks, political interference and financial crime.
This is why building a truly international BRICS payment ecosystem could take years even if political agreement is reached relatively quickly.
India's 2026 BRICS Presidency Gives New Delhi a Unique Opportunity
India's chairship of BRICS in 2026 comes at an important moment. The upcoming New Delhi summit is expected to discuss financial cooperation, national currencies, digital payments and broader economic integration among member and partner countries. Finance ministers and central-bank representatives are also working on proposals ahead of the leaders' meeting. The Financial Express
India therefore has an opportunity to shape the direction of the conversation.
New Delhi does not need to present the BRICS financial agenda as a confrontation with the United States or the Western financial system. A more practical approach would be to focus on lowering transaction costs, improving payment speed, increasing financial inclusion and giving emerging economies greater flexibility.
Such an approach could attract support even from countries that do not want to abandon the dollar.
The message would be simple: countries should have more efficient choices.
A Common BRICS Currency Is Not Necessary
The strongest argument against focusing excessively on a common BRICS currency is that the group can achieve many of its practical financial objectives without one.
A common currency would require enormous political and economic coordination. A connected payment infrastructure does not.
If India retains the rupee, China retains the yuan, Russia retains the rouble and other members retain their currencies, the countries can still create mechanisms through which payments move more efficiently between them.
This is why India's position is significant. Rather than spending political energy on creating a symbolic alternative to the dollar, India appears more interested in developing practical systems that solve real problems for businesses and consumers.
That approach may ultimately prove more sustainable.
Could BRICS Actually Reduce the World's Dependence on the Dollar?
The answer is likely to be gradual rather than dramatic.
The dollar possesses enormous advantages. It is deeply embedded in global trade, international finance, foreign-exchange markets and reserve management. It would be unrealistic to expect a new payment system to suddenly displace it.
But international finance does not have to be an all-or-nothing system.
If BRICS countries begin settling more transactions in national currencies, if their payment systems become interoperable and if digital currencies can eventually be used safely for cross-border settlement, then the proportion of international transactions requiring dollar-based intermediaries could gradually decline.
That would represent a change even if the dollar remained the world's most important international currency.
The real transformation would be the creation of a more multipolar payment environment.
India's Opportunity Is Bigger Than De-Dollarisation
For India, the most important opportunity may not actually be reducing the dollar's influence.
It may be increasing India's own influence.
India has already demonstrated that a large and diverse economy can build a digital payment infrastructure capable of processing enormous transaction volumes at very low friction. If that infrastructure becomes connected to more international payment systems, India's technological standards could become part of the financial infrastructure used by other countries.
That would strengthen India's position as a digital-economy power.
It could also benefit Indian exporters, importers, tourists, students, migrant workers and financial institutions. A payment ecosystem that works across borders with fewer barriers could make international commerce easier for ordinary people as well as large corporations.
The strategic value of that development should not be underestimated.
The Future May Be About Many Payment Roads, Not One
For decades, the international financial system has functioned as though there were one particularly important highway connecting the world's economies, with the dollar occupying a central position on that highway. The emerging BRICS approach is not necessarily about destroying that road. It is about building additional roads.
Some countries may continue using the dollar heavily. Others may increasingly use their national currencies. Some transactions may use digital currencies issued by central banks. Payment systems such as UPI may connect with similar networks in other countries, creating faster routes for everyday payments.
The result could be a financial system with more alternatives than the world has traditionally had.
That would not necessarily mean the end of the dollar.
It would mean that the dollar would have more competition.
What the BRICS Payment Debate Really Means for India
The most important development in the BRICS financial debate is therefore not the creation of a new currency. It is the possibility of creating a new architecture for how money moves between countries.
India has entered this debate from a position of strength because it has already built one of the world's most successful digital payment systems. UPI's enormous domestic scale, growing international footprint and interoperability provide India with a technological foundation that many countries would like to develop. Press Information Bureau
But technology alone will not determine the outcome. India will have to balance openness with security, internationalisation with regulatory control, and economic integration with strategic autonomy. It will also have to work with countries whose political and economic interests do not always align with New Delhi's.
If India succeeds, however, the reward could extend well beyond cheaper payments.
The rupee could become more widely used. Indian digital-payment standards could gain international influence. Cross-border remittances could become cheaper. Indian businesses could find new markets easier to access. And India could strengthen its position as one of the countries helping shape the next generation of global financial infrastructure.
The world may therefore not be moving toward a future without the dollar.
It may be moving toward a future in which the dollar is no longer the only practical route.
And for India, that distinction could be enormously important.
The real BRICS story is not about replacing one currency with another overnight. It is about giving countries more choices in a financial world that is becoming increasingly digital, interconnected and multipolar. If India can turn the success of UPI into meaningful international connectivity, the country may not simply participate in the changing global payment system—it could help design it.