BRICS to Link UPI with Russia’s FPS for Easier Payments
Dr Pawan Josh reveals BRICS Payment Task Force plans to link UPI with Russia's FPS to ease cross-border payments and local-currency settlements.
The landscape of international transactions is set for a significant shift as the BRICS Payment Task Force accelerates efforts to bridge digital payment systems. Dr Pawan Josh, Chairman of the BRICS International Forum, has confirmed that the group is actively working on payment interoperability and local-currency settlements to streamline cross-border movement of money.
A major highlight of this initiative is the proposed link between India’s Unified Payments Interface (UPI) and Russia’s Faster Payments System (FPS). This move aims to simplify how citizens and businesses interact across borders, particularly between these two major economies.
A Seamless Experience for Travelers and Consumers
The first phase of this integration will focus on a consumer-to-business (C2B) model. This pilot program is designed to provide immediate practical benefits to everyday people, such as:
- Indian Tourists in Russia: Travelers from India will be able to make payments in Russia using their UPI apps.
- Russian Tourists in India: Travelers from Russia can utilize the FPS to pay for goods and services in India.
By reducing the heavy reliance on physical cash and navigating through complex, expensive cross-border banking channels, the system promises to make life easier for tourists, students, and families managing international remittances.
Expanding to Business and Digital Currencies
While the initial focus is on consumers, the scope of the project is much broader. Dr Josh noted that a business-to-business (B2B) layer specifically for exporters is currently under development. This would allow companies to settle trade in local currencies, reducing the friction often found in international commerce.
Furthermore, discussions are ongoing regarding the use of Central Bank Digital Currencies (CBDCs). The task force is exploring how the digital rupee and the digital ruble can be integrated into this interoperable framework to enhance transaction speed and security.
Not a Challenge to SWIFT or De-dollarisation
Addressing concerns that these BRICS-led initiatives are intended to dismantle the existing global financial order, Dr Josh was quick to clarify the group's intentions. He emphasized that the goal is not to replace the current backbone of global finance, such as SWIFT, which connects over 11,000 institutions across 200 countries.
“We are not talking about de-dollarisation,” Josh stated, asserting that the initiative is about creating efficiency rather than causing "ripples" in the established system. He described BRICS as an economic grouping focused on practical solutions rather than a political or military alliance.
Timeline and Implementation
Despite rumors suggesting that "BRICS Pay" had been sidelined due to pressure from Western nations, Dr Josh dismissed these claims, stating there has been no financial escalation. He clarified that "BRICS Pay" is simply a name, while the actual work continues through the Payment Task Force.
The implementation of these integrated systems is currently being aligned with the goals of participating nations, with a target window around 2030. The ultimate priority remains enhancing financial sovereignty and making essential services like travel, education, and remittances more accessible to the citizens of BRICS nations.