India, Russia working on digital currency trade settlement, Sberbank CEO says

India and Russia have begun working on a digital currency settlement mechanism for bilateral trade, with the two countries' central banks examining how state-issued currencies could be used for cross-border payments, Sberbank Chief Executive Officer Herman Gref said on Friday in New Delhi.

"Now it's only beginning, but we see huge opportunity for digital currency for all settlements between the countries," Gref told reporters at the BRICS summit, according to Bloomberg. He said the Bank of Russia and the Reserve Bank of India are actively working on the mechanism, with Sberbank supporting the effort.bloomberg

A Live CBDC Rail in Russia

The discussions come shortly after Russia launched the nationwide rollout of its digital ruble on Sept. 1, requiring all 12 of the country's systemically important banks to provide digital ruble services. Large retailers with annual revenue above 120 million rubles must also accept the currency. Consumer participation remains voluntary, and individuals can open wallets through participating banks' mobile apps.themoscowtimes+2

India has been testing its own digital rupee since launching wholesale and retail pilots in late 2022. The value of digital rupees in circulation climbed from 234 crore rupees in fiscal 2024 to over 1,016 crore rupees in fiscal 2025, according to the RBI's annual report.cryptonews

BRICS Summit and Cross-Border Ambitions

The bilateral talks are unfolding against the backdrop of the BRICS summit in New Delhi, where India is expected to propose a broader cross-border digital payment system linking member nations' currencies. The RBI has proposed connecting BRICS CBDCs to support direct settlements between participating countries, a plan that could be formally tabled at the summit taking place on Sept. 12 and 13.youtube+2

Such a network would require participating central banks to establish common technical standards and settlement rules. India has framed the initiative as a way to simplify trade and tourism payments rather than as a challenge to the U.S. dollar.youtube

Trade Imbalance Persists

Bilateral trade between India and Russia has reached nearly $60 billion in India's fiscal 2026, driven largely by Indian purchases of Russian oil following Moscow's 2022 invasion of Ukraine. The trade imbalance exceeds $50 billion in Russia's favor, and Gref said his country needs more Indian exports flowing into the Russian market.economictimes+1

Gref also noted that the earlier problem of Russia accumulating large rupee balances from lopsided trade had eased, with Russian companies finding ways to deploy funds, including through investments in Indian government securities. Rupee-ruble mechanisms already account for around 96 percent of India-Russia trade, according to Sberbank India.cryptonews+1