India and Russia are exploring the use of central bank digital currencies, or CBDCs, for bilateral trade settlements, potentially opening a new channel for faster and more efficient cross-border payments.
Sberbank CEO Herman Gref said the Russian central bank and the Reserve Bank of India are working on a mechanism to use digital currencies for settlements between the two countries. He described the initiative as being at an early stage but said there was significant potential for digital currencies in bilateral trade.
The development comes as both countries seek to improve payment mechanisms for their growing trade relationship. Russia launched its digital ruble through systemically important banks, including Sberbank, on September 1, while India has been running its digital rupee pilot since 2022.
India and Russia are also working to expand bilateral trade to $100 billion by 2030. Trade stood at nearly $60 billion in India’s 2025–26 financial year, although the relationship remains heavily tilted towards Russian exports to India.
The proposed digital currency mechanism could become part of wider efforts within BRICS to improve cross-border payments and reduce dependence on traditional international payment infrastructure.
