RBI to interlink UPI with Europe’s TIPS for cross-border transfers

The Reserve Bank of India (RBI) on Friday announced the interlinking of the Unified Payments Interface (UPI) with the TARGET Instant Payment Settlement (TIPS) of the Eurosystem, marking a major step forward in strengthening cross-border payments.

According to an RBI statement, the proposed UPI–TIPS linkage is intended to enable seamless cross-border remittances between India and the Euro Area, delivering benefits to users in both regions. The RBI and NPCI International Payments Limited (NIPL) have been working with the European Central Bank to connect UPI with TIPS, the Eurosystem’s instant payment platform.

The RBI noted that the interlinking of UPI with fast payment systems in other jurisdictions has been a key priority, in line with the G20 Roadmap to enhance cross-border payments by making them cheaper, more efficient, more transparent and more accessible.

The central bank said it will continue to collaborate closely with the European Central Bank to operationalise the UPI–TIPS connection, covering technical integration, risk management and settlement processes.

The announcement comes as India’s digital payments framework continues to gain global traction. Recently, Peru’s Ambassador to India, Javier Manuel Paulinich Velarde, told ANI that Peru expects to roll out a UPI-like real-time digital payments system next year. The NIPL and the Central Reserve Bank of Peru agreed in 2024 to introduce the system, which will make Peru the first South American country to adopt UPI-based technology once implemented.