In a move that signals deeper integration of BRICS economies and growing efforts to shift away from dollar dependence, the New Development Bank (NDB) — the multilateral development bank founded by BRICS nations — plans to issue its first rupee-denominated bond in India’s domestic market by March 2026.
Till now, the NDB has largely financed projects using foreign currencies such as the Chinese yuan (renminbi) and South African rand. The rupee issuance marks a strategic pivot, elevating India’s currency in BRICS’ financial operations and expanding the bank’s domestic footprint.
According to sources, the target is to raise USD 400–500 million through 3- to 5-year rupee bonds. Negotiations are reportedly underway with the Reserve Bank of India (RBI) for final approvals, although it is not yet clear whether full government consent has been obtained.
This plan aligns with the NDB’s 2022–26 strategy, which envisages that up to 30% of its financing should be denominated in member countries’ national currencies.
Strategic & geopolitical implications
The shift toward rupee-denominated bonds is more than a routine financial decision — it ties into broader efforts by BRICS members to strengthen the role of their national currencies and reduce dependency on Western currencies, particularly the U.S. dollar. This trend, often characterized as “de-dollarisation,” has gained traction in recent years among emerging markets.
Issuing rupee bonds is likely to improve liquidity in India’s domestic bond market, attracting local institutional investors, such as pension funds and insurance companies, who are more comfortable with rupee exposure rather than foreign-currency risk.
Furthermore, by expanding the currency palette of BRICS financing, the NDB may reduce foreign exchange mismatches, strengthen financial stability in member states, and deepen the integration of capital markets across the alliance.
Challenges & uncertainties ahead
One key challenge is regulatory clearance. As the rupee is a domestic currency, issuing bonds via a multilateral institution involves navigating Indian financial and legal frameworks. If full government approval is not secured, the issuance could be delayed or scaled back.
Investor appetite is another question. While the rupee bond issue appeals to local investors, foreign investors may hesitate unless they see strong rupee stability, yield premium, and clear legal safeguards. Volatility in India’s exchange rate or inflation could dampen demand.
Finally, this experiment will be closely watched to assess whether similar initiatives will follow in other BRICS member states — for example, rupee bonds might inspire parallel efforts in China (yuan), Brazil (real), Russia (ruble), or South Africa (rand). Success here could set a precedent.
Broader BRICS agenda: reform & financing
This bond issuance comes amid other major developments within BRICS. In July 2025, the finance ministers of BRICS proposed a unified reform of the International Monetary Fund (IMF), calling for a quota realignment to reflect current economic standings of member states.
Moreover, BRICS has plans to launch a multilateral guarantee fund (BMG) backed by the NDB, designed to reduce investment risk and mobilize private capital in member countries, especially for infrastructure, climate, and development projects.
