RBI Unveils New Link Between India’s UPI and Europe’s Instant Payment System
RBI announces interlinking of India's UPI with Europe's instant payment system to ease cross-border remittances.
In a landmark announcement, the Reserve Bank of India (RBI) has declared the interlinking of India’s Unified Payments Interface (UPI) with the European TARGET Instant Payment Settlement (TIPS) system. This strategic move aims to facilitate seamless cross-border remittances between India and the Euro Area, benefiting users across both jurisdictions by making international money transfers cheaper, faster, and more transparent.
The RBI, along with NPCI International Payments Limited (NIPL), has been actively engaging with the European Central Bank to connect UPI with TIPS, the Eurosystem’s instant payment infrastructure. Following sustained collaboration, both parties have entered the realization phase, focusing on technical integration, risk management, and settlement arrangements to operationalize the linkage. This initiative aligns with the G20 roadmap that emphasizes enhancing cross-border payment systems globally.
This interlinkage reflects India’s commitment to expanding UPI’s footprint beyond its borders, fostering international financial connectivity. The RBI has been pursuing similar connections with fast payment systems internationally to promote accessible and efficient cross-border payments. The anticipated outcome is not only faster remittances but also greater transparency and affordability for users on both sides.
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In related developments, Peru is set to implement a UPI-like real-time digital payment system by next year, making it the first South American country to adopt this technology. This follows a partnership between NIPL and the Central Reserve Bank of Peru, further showcasing India’s role in spreading its payment innovations globally.
The UPI-TIPS integration marks a significant evolution in international finance, promising to simplify digital payments for millions and strengthening economic ties between India and Europe through advanced payment technology.
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