Rio de Janeiro [Brazil], July 7 (ANI): Post the COVID-19 pandemic, countries in the Global South, including the emerging economies of the 10-member BRICS grouping, are looking for alternatives to boost their economies and the interoperability payments have emerged as a good alternative, according to MEA Secretary (Economic Relations) Dammu Ravi.

Addressing a press briefing in Rio de Janeiro on Sunday, the MEA official said, 'On the BRICS cross-border payments and the debt servicing issues. I think this is a concern post-COVID, as you all know that countries economically have become weak in the Global South and that is truly the concern of the BRICS countries because BRICS in some sense represent global South countries, a multipolarity in its strongest terms because there is a diversity in the BRICS countries. So this was one of the ideas. Now, what are they looking for? Countries are looking for alternatives. Interoperability payment is a faster mechanism in terms of able to do cross-border trading. And this is a low-cost solution.'

The MEA Secretary said interoperability payments offer a faster mechanism for cross-border transactions and that India has been successfully operating its low-cost Unified Payments Interface (UPI) for some time now.

'India has been successfully implementing it, and we are also entering into bilateral arrangements with many countries. So, within the BRICS track, there is a discussion on it. We are hopeful that in the days to come there will be traction and countries will accept it as it is beneficial for most of them.'

Further, the MEA official also spoke about the mutual settlement of trade in the national currencies of countries.

'Significant progress has also happened in that context, and all countries have been supportive on that front,' MEA Secretary Ravi said.

Prime Minister Narendra Modi held a meeting with Cuba's President Miguel Diaz-Canel Bermudez on the sidelines of the 17th BRICS Summit in Rio de Janeiro on Sunday.

Acknowledging India's expertise in the digital domain, President Diaz-Canel expressed interest in India's Digital Public Infrastructure and UPI, according to a statement by the MEA.

Launched in 2016 by the National Payments Corporation of India (NPCI), UPI has revolutionized India's payment ecosystem by integrating multiple bank accounts into a single mobile application. This system enables seamless fund transfers, merchant payments, and peer-to-peer transactions, offering users flexibility through scheduled payment requests.

International UPI merchant payments are being accepted in seven countries Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE

Meanwhile, in the leaders' declaration issued after the summit of the BRICS group in Rio de Janeiro on Sunday, the member countries voiced 'serious concerns about the rise of unilateral tariff and non-tariff measures' in the multilateral trading system, warning that such actions are illegal and arbitrary.

The BRICS joint statement described the 'indiscriminate rising of tariffs and non-tariff measures' as part of a wider trend of trade-restrictive practices that risk-reducing global trade, disrupting supply chains, and creating uncertainty in the global economy.

'The proliferation of trade-restrictive actions, whether in the form of indiscriminate rising of tariffs and non-tariff measures, or protectionism under the guise of environmental objectives, threatens to further reduce global trade, disrupt global supply chains, and introduce uncertainty into international economic and trade activities, potentially exacerbating existing economic disparities and affecting prospects for global economic development. We voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules,' the joint statement said.

India is among the five founding members of BRICS, alongside Brazil, Russia, China and South Africa. In 2024, the bloc expanded to include Indonesia, Iran, Egypt, Ethiopia and the United Arab Emirates. Next year, India is set to host the BRICS summit next year and will be chairing it for the second time. (ANI)