Reserve Bank of India (RBI) Governor Sanjay Malhotra and Central Bank of Iran Governor Dr Abdolnaser Hemmati held bilateral talks on 12 August on the sidelines of the BRICS Finance Ministers and Central Bank Governors meeting in Jaipur, Rajasthan. The discussions centred on deepening banking cooperation, expanding bilateral monetary ties, and facilitating trade between the two nations.

Key Developments from the Meeting

The two central bank governors exchanged views on major international economic and financial developments, exploring avenues for institutional cooperation between their respective banking systems. Both sides underscored the importance of leveraging multilateral mechanisms and sustaining regular consultations to ease trade and economic exchanges between India and Iran.

The meeting was framed within the broader objective of the BRICS gathering — strengthening economic coordination among member countries and collectively addressing shifts in the global financial landscape.

Iran's Push to Join the New Development Bank

Separately, Governor Hemmati signalled Iran's intent to formally join the New Development Bank (NDB), the BRICS-backed development lender established in 2015 by Brazil, Russia, India, China, and South Africa. 'The most important result of cooperation among BRICS member countries is the establishment of the New Development Bank, and our country will soon become a member of this bank,' Hemmati said, according to state media.

Iran joined the BRICS grouping in 2024 as part of a landmark expansion of the bloc. Its bid to become an NDB member and shareholder is widely seen as part of a broader effort to access alternative payment channels and reduce dependence on the US dollar — a strategic priority as Iran's economy continues to operate under sustained US sanctions.

Context: BRICS Jaipur Meeting

India is hosting the two-day BRICS Finance Ministers and Central Bank Governors meeting from 12 to 13 August in Jaipur under its rotating BRICS chairship. Representatives from all 11 BRICS member countries are deliberating on key economic and financial issues at the event. The NDB, which now counts the United Arab Emirates, Egypt, and several other emerging economies among its members, has become a focal point of these discussions as BRICS nations seek to build financial architecture independent of Western-dominated institutions.

What This Means for India-Iran Banking Ties

For India, deeper banking engagement with Iran carries both strategic and commercial dimensions. India has historically been a significant buyer of Iranian crude, and bilateral trade has been constrained by sanctions-related payment bottlenecks. Enhanced central bank coordination, particularly through multilateral frameworks like the NDB, could offer structured pathways for settlement outside dollar-dominated systems. Notably, this meeting marks a visible signal of intent at the highest monetary policy level, even as the practical architecture for such cooperation remains to be built.