BRICS finance ministers discuss possibility of efficient cross-border payment mechanisms

New Delhi: Finance ministers and central bank governors of BRICS countries have discussed the possibility of efficient cross-border payment mechanisms.

"We acknowledge the efforts of the BRICS Payment Task Force (BPTF) towards exploring pragmatic solutions for efficient cross-border payment mechanisms, drawing on the guidance provided by our leaders in the Kazan and Rio Declarations, on the BRICS Cross-Border Payments Initiative," a joint statement of BRICS Finance Ministers and Central Bank Governors (FMCBG) said on Friday.

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The joint statement comes a day ahead of the two-day BRICS Summit being held in Delhi.

The BPTF also studied cross-border interoperability of payment and messaging channels, and held discussions on promoting trade settlements and investments using local currencies of BRICS countries, it said.

While pursuing these efforts, the task force has been asked to respect national priorities and recognise that there is no "one-size-fits-all" approach.

"We encourage the BPTF to continue discussions, building on the ongoing work, to facilitate practical solutions for cross-border payments among BRICS countries, which are fast, low-cost, more accessible, efficient, transparent, and safe," the statement said.

With the growing share of emerging markets and developing economies (EMDEs) in global output and growth, reform of global 29 economic governance remains a consistent BRICS priority; it said they will continue to strengthen coordination among BRICS members to make international financial institutions more representative, transparent and accountable.

FMCBG reiterated the urgent need to reform the Bretton Woods Institutions (BWI) to make them more agile, effective, credible, inclusive, fit for purpose, unbiased, accountable, and representative, to enhance their legitimacy.

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BWI governance structure should be reformed to reflect the transformation of the global economy since their establishment, it said.

The voice and representation of EMDEs in the BWI must reflect their relative position in the global economy, it said.

It also reiterated a call for improved management procedures, including through a merit-based, inclusive and transparent selection process that would increase regional diversity and representation of EMDEs in the leadership of the IMF and the World Bank.

FMCBG reaffirmed the BRICS Rio de Janeiro Vision for IMF Quota and Governance Reform and the need for a strong, quota-based and adequately resourced IMF at the centre of the global financial safety net to effectively support its members, particularly the most vulnerable countries.

It reaffirmed that the 2025 World Bank Shareholding Review is a critical tool to strengthen multilateralism and enhance the legitimacy of the World Bank Group, as a better, bigger, and more effective development finance institution.

With regard to the New Development Bank (NDB), the joint statement said, "As it embarks on its second golden decade of high-quality development, we recognise and support the growing role of the NDB as a robust and strategic agent of development and modernisation in BRICS and the Global South".

The statement encouraged the bank to mobilise resources, expand local currency financing, strengthen project-preparation facilities, diversify funding sources, foster innovation, and support high-impact projects that contribute to inclusive and sustainable growth in member countries.

It reiterated its support for the NDB's efforts to fulfil its mandate in a fair, transparent and non-discriminatory manner and further consolidate its role as a leading multilateral development institution for emerging markets and developing economies.

FMCBG welcomed the progress made in advancing the BRICS Multilateral Guarantees (BMG) initiative in line with the guidance provided by BRICS Leaders in 2025.

It noted the preparatory work undertaken by the NDB for the pilot phase of the initiative under its existing Policy on Guarantees aimed at supporting sustainable development and resilient infrastructure projects.

They expressed commitment to curbing tax-related illicit financial flows and encouraging a fair allocation of taxing rights.

FMCBG reaffirmed its commitment to strengthening BRICS Tax Cooperation through resilience, innovation, cooperation and sustainability, while promoting knowledge sharing and capacity building, constructive engagement in international forums like the United Nations Framework Convention on International Tax Cooperation and its protocols in order to support a fair, efficient and future-ready international tax ecosystem.