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18th BRICS Summit in New Delhi: Exploring CBDC-Linked Cross-Border Payments to Reduce Dollar Dependency

Intl. RelationsEconomyCORE
Target:UPSC GS-IIMPSCBankingTeachingSSC GAPrelims HighMains HighStatic GK Link
05 Sept 2026
~2 min
Source: The Hindu
Key Data:18th BRICS summit Sept 2026 New DelhiSWIFT: 11,000+ institutions in 200+ countriesForex margins 2.5%-20% (BRICS survey)Correspondent banking fell 20% (2011-2018)mBridge 95% digital yuanTrump 100% tariff threat Nov 2024
Bodies:BRICSSWIFTBank for International Settlements (BIS)People's Bank of ChinaReserve Bank of India (RBI)US Federal ReserveNational Bank of Belgium
Practice MCQs from today's news ▸
What This Article Covers

1.BRICS aims to reduce reliance on the US dollar and SWIFT for cross-border payments, which currently involve costly correspondent banking and double currency conversion (forex margins up to 20%).

2.Proposed alternatives include linking CBDCs (e.g., mBridge platform, 95% volume in digital yuan) and bilateral payment system links (e.g., India-Singapore UPI-PayNow).

3.India frames its proposal as a cost-reduction measure to avoid US tariff threats (Trump's 100% tariff threat in Nov 2024), while Russia pushes harder for an alternative system post-SWIFT disconnection.

The Big Picture
Prelims · HighMains · High

BRICS nations are pushing for alternatives to the dollar-dominated cross-border payment system, including linking CBDCs and national payment systems, to cut costs and reduce vulnerability to sanctions. India proposes a cautious approach focusing on cost reduction, while Russia advocates for a full de-dollarization. The 18th BRICS summit in New Delhi (September 2026) will discuss these mechanisms.

Exam Lens

Quick Exam Facts From News

18th BRICS SummitNew Delhi, September 2026; India as Chair
SWIFT Membership11,000+ institutions in 200+ countries
Forex Margins (BRICS survey)2.5% to 20% (Brazil respondents)
Correspondent Banking Decline20% fall between 2011-2018 (BIS)
mBridge Settlement Volume95% in China's digital yuan

1-Minute Revision

  • ›18th BRICS Summit: New Delhi, September 2026; India as Chair
  • ›SWIFT Membership: 11,000+ institutions in 200+ countries
  • ›Target this Data: 18th BRICS summit held in New Delhi, September 2026, with India as Chair.
  • ›Target this Nodal Body: SWIFT is overseen by the National Bank of Belgium along with G-10 central banks (including U.S. Federal Reserve).
  • ›Target this Legal Point: Russia's banks were cut off from SWIFT in 2022 following the invasion of Ukraine.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageMedium

Which institution oversees the SWIFT messaging network?

Q2Statement-basedHard

Consider the following statements regarding BRICS cross-border payment initiatives:

1. The mBridge platform is a CBDC-based settlement system built by the BIS with central banks of China, Thailand, Hong Kong, and the UAE.

2. The Kazan declaration of BRICS in 2024 agreed to establish an independent settlement system called BRICS Clear.

3. India has proposed linking CBDCs for trade and tourism payments as a means to displace the US dollar.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what percentage of mBridge's settlement volume is in China's digital yuan?

Q4Application/ImpactMedium

Why have Indian officials carefully framed BRICS payment system discussions as a means of cutting transaction costs rather than displacing the dollar?

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