The Reserve Bank of India (RBI) has announced the start of the process of linking UPI with Europe’s TARGET Instant Payment Settlement (TIPS) system. The RBI, NIPL, and the European Central Bank will work together to make the UPI–TIPS link operational.
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The Reserve Bank of India (RBI) made a landmark announcement on Friday, announcing that India’s digital payment system, UPI, will now be integrated with Europe’s instant payments platform, TARGET Instant Payment Settlement (TIPS). This initiative is the result of long-standing discussions and collaboration aimed at making remittances between India and Europe fast, simple, and cost-effective.
RBI and NPCI International Payments Limited (NIPL) have been discussing UPI–TIPS interlinking with the European Central Bank for some time. Following ongoing and positive discussions, both parties have now agreed to initiate the next phase of the project, the “Realization Phase.” This is the phase in which the actual process of connecting the two systems begins.
UPI–TIPS link will revolutionize cross-border payments
The primary objective of this interlinking is to make remittances between India and Europe faster and more accessible. Users in both countries will now be able to send money in a shorter timeframe, without any additional complications. Transaction costs are also expected to be lower.
TIPS is a real-time payment platform operated by the Eurosystem, enabling instant payments between multiple European countries. Once integrated with UPI, India’s digital payment system will establish a direct connection with European countries for the first time.
This major initiative is part of the G20 roadmap
The RBI clarified that this move is aligned with the G20 roadmap goals, which include making cross-border payments more transparent, fast, secure, and affordable. Since international transactions are often expensive and time-consuming, the UPI–TIPS link could significantly address this issue.
UPI is expanding rapidly globally
This decision by the RBI is being considered a major milestone in expanding UPI globally. UPI has already been accepted in many countries, but direct integration with the Eurozone will further expand the reach of the Indian digital payment system.
With the launch of the UPI-TIPS link, Indian citizens, students, professionals, and merchants living in Europe will benefit significantly. Sending and receiving money will become much simpler and cost-effective than it is now.
What are TIPS and NIPL?
TIPS (TARGET Instant Payment Settlement) is the Eurosystem’s instant payment platform that facilitates instant payments in euros. NIPL (NPCI International Payments Limited) is the international arm of NPCI, responsible for promoting Indian payment technologies such as UPI and RuPay abroad.
Users will have many benefits
According to the RBI, this interlinking will speed up the remittance process and reduce fees. It will also increase transparency and improve settlements. India’s digital payment system will become even stronger globally.
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