Deepshikha Sikarwar

The global grouping celebrates 20 years at the New Delhi summit on September 12-13. A high-level meeting would be held next week to thrash out mechanisms for use of digital currencies, and explore ways to increase intra-BRICS trade using national currencies, said the people mentioned above.

India is likely to pitch seamless cross-border digital payments, and adoption of central bank digital currencies (CBDCs) among BRICS member states at the summit it would host next month, people familiar with the deliberations told ET.

India is working on a set of clarifications to its foreign direct investment (FDI) policy aimed at providing greater clarity on rules governing investments from countries that share a land border with the country, people familiar with the matter said.

The global economy shows resilience despite recent shocks and continues growing. Artificial intelligence offers significant opportunities for emerging economies, especially India. India can leverage AI to boost productivity, jobs, and living standards. The World Bank supports India's adoption and adaptation of AI technologies. Focusing on AI applications and local content will drive positive outcomes.

The Reserve Bank of India anticipates minimal costs from significant forex inflows. High interest rates on US treasuries are expected to offset hedging expenses. These record inflows will also reduce currency intervention costs for the central bank. Economists suggest hedging costs could reach thirty-six thousand crore rupees. The RBI's balance sheet growth may impact future surplus transfers to the government.

The Centre does not expect the Reserve Bank of India (RBI) to face material costs from the unprecedented $127-billion inflows through forex inflow schemes underpinned by a swap facility, people aware of the details of the dedicated plans that closed August 31 told ET.

India secured one billion dollars from the International Finance Corporation for banks. This funding will provide long-term credit to small businesses and financial institutions. The facility will address a key gap by offering loans of up to seven years. It aims to galvanize MSME capital expenditure investment and support modernization.

India is close to finalizing its model text for bilateral investment treaty talks with the United Kingdom. Internal discussions on the draft agreement are nearly complete and cabinet approval is expected soon. The government is reviewing measures to make the treaty more attractive for foreign investors. This comes after previous talks stalled over taxation issues and international arbitration cases.

Central banks must monitor energy price impacts and potential second-round inflation effects. Global regulatory coordination is crucial for advanced AI technology challenges. Stablecoins require careful regulation to mitigate negative economic spillovers. Economies can build inventories, diversify, and develop technology for resilience. The BIS supports tokenization within traditional banking systems for stability.

Central banks need to monitor the potential second-round effects coming from increasing energy prices, according to Bank for International Settlements (BIS) chief Pablo Hernández de Cos. In an exclusive video interview with Deepshikha Sikarwar ahead of his visit to India for Global Fintech Fest in Mumbai, the former Spanish central bank chief also stressed the need for global regulatory coordination to face the challenges posed by advanced AI, regulate stablecoins and mitigate negative spillovers. Edited excerpts: