Putin asks BRICS to consider SWIFT alternative, a grain exchange, own reinsurance firm
At the 18th BRICS Summit held in New Delhi, the Russian side put forward proposals for BRICS members to consider: a payment, depository and clearance infrastructure (referred to as BRICS Pay) as an alternative messaging and settlement channel to SWIFT, a BRICS grain exchange, and a reinsurance mechanism.
The proposals were framed as tools to reduce dependence on Western-controlled financial and commodity-market infrastructure, without displacing the dollar through a shared currency.
India's side clarified that there is no proposal for a common BRICS currency; the emphasis remains on interoperability of local-currency and domestic payment systems rather than a monetary union.
The proposals were presented as suggestions for members to explore, with no operational timelines, capital commitments or institutional design finalised at the summit.
SWIFT and the Case for Alternative Payment Messaging Systems
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a Belgium-based cooperative messaging network, not a payment or clearing system itself — it lets banks in over 200 countries securely exchange standardised instructions for cross-border transactions, which are then settled through correspondent banking relationships typically denominated in US dollars. Because SWIFT membership can be suspended for sanctions purposes (as happened to several Russian banks after 2022), countries facing or fearing sanctions have pushed to build parallel messaging/settlement rails.
Key Details
- SWIFT was founded in 1973 and is headquartered in La Hulpe, Belgium; it does not hold funds or process payments, only instructions
- Russia's SPFS (System for Transfer of Financial Messages) and China's CIPS (Cross-Border Interbank Payment System) are existing national alternatives; BRICS Pay would attempt to link such national systems rather than create a single new network
- India's own instant payment system, UPI, is run by the National Payments Corporation of India under RBI/Indian Banks' Association oversight, and has been explored for cross-border linkages with UAE, Singapore and other partners
The BRICS Pay proposal is best understood as inter-linking existing domestic systems (UPI, CIPS, SPFS, Pix) so that trade can be invoiced and settled in local currencies, bypassing SWIFT messaging and dollar-correspondent chains — not as the creation of a single unified BRICS payment authority.
BRICS Financial Architecture — NDB, CRA and the Proposed Reinsurance Mechanism
BRICS already runs two standing financial institutions created to reduce dependence on the dollar-centric Bretton Woods system: the New Development Bank (NDB) for project financing, and the Contingent Reserve Arrangement (CRA) for balance-of-payments support. A reinsurance mechanism, by contrast, is a newly floated idea with no treaty or capital base yet — it would pool risk-coverage capacity for large infrastructure and energy projects among BRICS members, reducing reliance on Western reinsurance majors (e.g., Munich Re, Swiss Re, Lloyd's).
The distinction matters for exam purposes: NDB and CRA are treaty-based, operational institutions with defined capital and governance, while the reinsurance mechanism and grain exchange are exploratory ideas floated at this summit — a common point of factual confusion in current-affairs coverage.
BRICS as a Grouping — Origin, Expansion and India's 2026 Chairship
BRICS began as an informal grouping (BRIC) of Brazil, Russia, India and China in 2009, with South Africa joining in 2010 to form BRICS. It has since evolved from an economic dialogue forum into a platform for institution-building (NDB, CRA) and, more recently, discussions on alternative trade and payment infrastructure — reflecting the shifting priorities of an expanded, more heterogeneous membership.
The scale of BRICS membership after 2024's expansion is precisely why proposals like a common payments network or grain exchange are being floated now — a larger, more diverse bloc has more collective negotiating weight to build parallel financial and commodity infrastructure, even though consensus-based decision-making means such proposals typically move slowly from idea to institution.
- Summit: 18th BRICS Summit, New Delhi, hosted under India's 2026 chairship
- BRICS full membership as of the 2026 summit: 11 countries (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE, Saudi Arabia, Indonesia)
- NDB: established 2014 (Fortaleza Summit), operational since 2015, HQ Shanghai, initial subscribed capital $50 billion
- CRA: $100-billion swap arrangement agreed in 2014; India's committed share is $18 billion
- SWIFT: founded 1973, HQ in Belgium, used by banks in 200+ countries for payment messaging (not settlement itself)
- India's official position (2026): no proposal for a common BRICS currency; focus remains on local-currency trade settlement and payment-system interoperability