India Links UPI With Eurozone TIPS to Boost Remittances

In a landmark development for global digital payments, the Reserve Bank of India (RBI) announced on Friday the interlinking of India’s Unified Payments Interface (UPI) with the Eurosystem’s TARGET Instant Payment Settlement (TIPS). This initiative is set to simplify and accelerate cross-border remittances between India and the Euro Area.

The RBI, in collaboration with NPCI International Payments Limited (NIPL), has been working closely with the European Central Bank (ECB) to establish this connection. TIPS, the instant payment platform operated by the Eurosystem, will now interface directly with UPI, allowing users to transfer money across borders in real time.

This move is part of RBI’s broader strategy to expand UPI’s footprint globally. The central bank has previously been in discussions to integrate UPI with several other international fast payment systems, aiming to make cross-border transactions cheaper, faster, and more transparent.

The UPI-TIPS linkage also aligns with the G20’s roadmap to enhance cross-border payment efficiency. By reducing transaction costs and processing time, the initiative is expected to benefit both individual users and businesses sending remittances between India and Europe.

In parallel developments, other countries are taking note of India’s real-time payment infrastructure. Peru, for instance, is preparing to launch a UPI-like digital payment system by 2024, becoming the first South American nation to adopt India’s UPI technology. This follows a partnership between NIPL and the Central Reserve Bank of Peru (BCRP) to implement instant digital payments, highlighting India’s growing influence in the global fintech space.

The RBI and NIPL have emphasized that work is ongoing to ensure the smooth operationalization of UPI-TIPS. Key areas of focus include technical integration, settlement arrangements, and risk management frameworks, ensuring that users can enjoy a seamless and secure remittance experience.

With this interlinking, India’s UPI takes another significant step toward becoming a global standard in digital payments, bridging continents and making international money transfers simpler and more efficient than ever.