India and Iran Central Bank Chiefs Discuss Monetary Cooperation and Trade Settlement at BRICS Meeting in Jaipur
The central bank governors of India and Iran held high-level discussions aimed at strengthening monetary and banking cooperation, expanding bilateral trade channels, and streamlining settlement mechanisms on the sidelines of the BRICS meetings hosted in the Indian city of Jaipur.
The bilateral meeting brought together Sanjay Malhotra, Governor of the Reserve Bank of India (RBI), and Abdolnasser Hemmati, Governor of the Central Bank of Iran (CBI). Both officials reviewed global macroeconomic developments and explored avenues to broaden interbank linkages and facilitate cross-border commercial transactions between the two nations.
De-Dollarization and Alternative Payment Channels
The talks come as Iran actively seeks to expand its international financial networks and trade mechanisms outside the U.S. dollar ecosystem in response to ongoing unilateral sanctions. Both sides stressed the importance of leveraging bilateral and multilateral frameworks to support stable, uninterrupted commercial exchanges.
During the meeting, Hemmati announced that Iran is set to formally join the New Development Bank (NDB)—the multilateral lender established by the BRICS bloc to finance infrastructure and sustainable development across emerging economies.
"Iran will soon become a member of the New Development Bank. The establishment of the NDB stands as one of the most prominent achievements of BRICS cooperation," Hemmati stated, according to Iranian media reports.
Following its official entry into the BRICS bloc in 2024, Tehran has prioritized becoming a shareholder and member of the Shanghai-based lender, which currently includes members such as the UAE, Egypt, and other emerging economies alongside the founding nations.
Key Outcomes of the Bilateral & BRICS Discussions
The following table summarizes the primary strategic pillars addressed during the Jaipur meetings:
Focus AreaStrategic Objective & Milestone
Bilateral Banking ChannelsEstablishing robust monetary channels to facilitate India-Iran trade and direct settlement.
Alternative Financial RailsReducing dependence on traditional reserve currencies and mitigating the impact of foreign trade restrictions.
NDB AccessionProgressing Iran’s formal shareholding and membership integration into the BRICS New Development Bank.
Multilateral CoordinationAligning financial strategies among the 11 member nations during the BRICS financial track meetings.
Context of the Jaipur Meetings
The bilateral talks coincided with the BRICS Finance Ministers and Central Bank Governors meetings held in Jaipur on August 12–13 under India’s rotational presidency of the group. The sessions convened delegations from 11 member states to address global financial stability, intra-bloc economic integration, and the expansion of local-currency settlement mechanisms.