Discussions on a payment system and use of national currency between BRICS countries is likely to feature prominently at the summit meeting in Kazan, Russia, this week but no “final agreements” have been reached on the matter yet.

“I am aware that there have been discussions on settlement systems and payment systems. There have been a number of discussions between our financial authorities. This, I think, is being discussed in the finance ministers’ track and the Central Bank governors’ track as well,” Foreign Secretary Vikram Misri said at a special briefing on the BRICS summit on Monday.

Prime Minister Narendra Modi will take part in the summit, hosted by Russian President Vladimir Putin, on October 22-23. “The PM will be departing for Kazan tomorrow to attend the 16th BRICS Summit at the invitation of Russian President Vladimir Putin. The theme of this edition of Brics is Strengthening multilateralism for just global development and security,” he said

BRICS countries, including Brazil, Russia, India, China and South Africa, are set to welcome new members, including Iran, Egypt, Ethiopia and the UAE, at the summit.

Final agreements on the payment system may have not yet been reached between the members, the Secretary said responding to a query.

“My understanding is that no final agreements have been reached yet. There have been intense discussions. There has been a certain amount of research that has been commissioned on these issues,” he said.

Currency settlement within the BRICS bloc will give members the flexibility of using a particular currency accumulated in one country to trade with another and help in `de-dollarisation’.

Russia has been pushing hard for fast-tracking talks on a BRICS payments system and a common currency but India wants to step cautiously.

Misri said that local currency settlement in BRICS could happen in phases with bilateral agreements taking place initially which could later be extended to incorporate more.

Officials tracking the matter had earlier told businessline that India may consider the proposal favourably provided the decision is non-binding and it is free to choose the members with which it wants to do currency settlement with while ignoring some others such as China.

Misri said that India plays a vital role in BRICS bringing significant value, particularly in sectors such as economic growth, sustainable development, and global governance reforms.

India places a great deal of importance on its involvement and activities within the BRICS forum as it is viewed as a key expression of global multi-polarity, the Foreign Secretary said. “BRICS also serves for us as a vital platform to tackle a range of global challenges while also contributing to shaping a fairer, more exclusive and open international order,” he added.