RBI unveils UPI-TIPS linkage to promote cheaper, faster cross-border payments between India and Europe

The Reserve Bank of India (RBI) on Friday, November 21, announced interlinking of the Unified Payment Interface (UPI) with the Eurosystem’s Targeted Instant Payment Settlement (TIPS).

In a press release, the RBI said it is “actively pursuing” integration of India’s UPI system with faster payment systems of other countries to “promote cross-border payments” by making sending money across borders cheaper, faster, more efficient, transparent and accessible.

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RBI and NPCI International Payments Limited (NIPL)
It is in talks with the European Central Bank on an initiative to link UPI with TIPS, the instant payment system operated by the Eurosystem.

The statement said that after constructive and sustained engagement, both parties have agreed to begin the implementation phase for the UPI-TIPS link.

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The UPI-TIPS interlinkage aims to facilitate cross-border remittances between India and Europe, and is expected to benefit people in both regions.

RBI said it will continue to cooperate closely with the European Central Bank to operationalize the UPI-TIPS link and complete technical integration, risk management and settlement arrangements.

The central bank said these efforts follow the G20 roadmap to reform cross-border payments.