The Cross-Border Interbank Payment System (CIPS) is China’s financial market infrastructure for facilitating cross-border and offshore Renminbi (RMB) payments and settlements.
It was launched in 2015 under the guidance of the People’s Bank of China (PBOC) and forms an important part of China’s effort to internationalise the Renminbi (Yuan).
How CIPS Works
CIPS provides participating financial institutions with infrastructure for:
- cross-border RMB payments;
- clearing and settlement of transactions;
- transmission of payment information;
- trade and investment-related RMB transactions;
- financial-market transactions involving the RMB.
Participants are divided into:
Direct Participants: Institutions that maintain accounts with CIPS and transact directly through the system.
Indirect Participants: Institutions that access CIPS through a direct participant.
By the end of August 2026, CIPS reported 211 direct and 1,642 indirect participants, with its network facilitating business through nearly 5,300 banking institutions across 192 countries and regions.
CIPS and SWIFT
CIPS and SWIFT are related to international payments but are not identical systems.
| CIPS | SWIFT |
| Primarily centred on cross-border RMB transactions | Global financial messaging network |
| Provides payment, clearing and settlement infrastructure | Primarily transmits standardized financial messages |
| Based in China | Based in Belgium |
| Supports internationalisation of RMB | Supports transactions involving numerous currencies |
| Can provide both messaging and settlement-related functions | Does not itself generally settle funds |
Thus, describing CIPS simply as “China’s SWIFT” is an oversimplification.
CIPS can also interact with the wider global financial messaging ecosystem rather than functioning entirely separately from it.
Strategic Significance
CIPS supports China’s broader objective of increasing the international use of the Renminbi in trade, investment and financial transactions.
Its expansion can:
- reduce dependence on dollar-centred payment channels for RMB transactions;
- provide financial institutions with additional infrastructure for cross-border RMB settlement;
- facilitate trade settlement in local currencies;
- strengthen China’s financial connectivity with trading partners;
- contribute to the gradual development of a more multipolar international monetary system.
Its geopolitical significance increased after Western countries used financial sanctions and restrictions on access to international payment networks against Russia following the Ukraine conflict.
However, expansion of CIPS should not be equated with displacement of the dollar-based financial system. The international role of a currency depends not merely on payment infrastructure but also on factors such as convertibility, financial-market depth, liquidity, institutional credibility and global confidence in the currency.
India and CIPS
For India, developments surrounding CIPS are relevant to wider debates on:
- de-dollarisation;
- settlement of bilateral trade in national currencies;
- resilience of international payment systems;
- financial sanctions and economic sovereignty;
- internationalisation of currencies;
- alternative cross-border payment mechanisms.
India’s approach is distinct from China’s RMB internationalisation strategy. India has promoted the international use of the Indian Rupee, including mechanisms for settlement of international trade in INR, while also expanding India’s digital-payment infrastructure internationally.
