In a landmark development for global financial connectivity, the Reserve Bank of India (RBI) has announced the interlinking of India’s Unified Payments Interface (UPI) with Europe’s TARGET Instant Payment Settlement (TIPS) system. The move marks a significant advancement in creating a seamless, fast, and low-cost cross-border payment corridor between India and the Euro Area.
This strategic collaboration reflects India’s rising influence in global digital payments and aligns with the broader G20 agenda to enhance cross-border transactions by making them cheaper, faster, more transparent, and universally accessible.
What the UPI–TIPS Interlinking Means
The proposed interlinkage will allow residents and businesses in both India and the European Union to send and receive money in real time. As UPI remains one of the world’s most efficient digital payment systems, and TIPS serves as Europe’s flagship instant payment settlement infrastructure, the integration is expected to radically simplify remittances, merchant transactions, and personal transfers between the two regions.
According to the RBI, this initiative will benefit millions of users by:
- Reducing remittance costs
- Cutting down processing time
- Making transactions more transparent
- Improving accessibility for individuals and companies
This is especially important for the large Indian diaspora living in European nations who rely on cross-border payments for family support, education, and business activities.
RBI, NIPL, and ECB: A Collaborative Effort
The RBI confirmed that it has been working closely with NPCI International Payments Limited (NIPL)—the global arm of the National Payments Corporation of India—and the European Central Bank (ECB) to establish the technical and regulatory framework for this partnership.
The collaboration focuses on:
- Technical integration of the two instant payment systems
- Risk management protocols to ensure secure cross-border transfers
- Settlement mechanisms for smooth financial flow
- Compliance with international standards and EU banking norms
TIPS, operated by the Eurosystem, allows instant settlement of payments in central bank money across participating European nations. By integrating UPI with TIPS, India and Europe are setting a precedent for global interoperability between real-time digital payment systems.
Part of India’s Larger Strategy for Global UPI Adoption
The RBI highlighted that it has been actively pursuing similar collaborations with other countries. India aims to position UPI as a global standard for instant payments, enabling easier and more affordable cross-border transactions.
The UPI–TIPS interlinking aligns with the G20 Roadmap for Enhancing Cross-Border Payments, endorsed by major global economies. The roadmap focuses on delivering remittances that are:
- Cheaper than traditional banking channels
- Faster, moving from days to seconds
- Transparent, with clear cost structures
- Accessible to the global population
India’s proactive approach is already gaining traction across several regions.
UPI’s Growing Global Footprint: Peru Next in Line
Interest in UPI technology continues to grow worldwide. Recently, Peru’s Ambassador to India, Javier Manuel Paulinich Velarde, shared that Peru aims to roll out a UPI-like real-time digital payments system by next year.
This project stems from a partnership announced earlier between:
- NIPL (NPCI International Payments Ltd.)
- Central Reserve Bank of Peru (BCRP)
Once launched, Peru will become the first South American nation to adopt UPI-based technology, marking a major milestone for India’s payments ecosystem on the global stage.
UPI is already accepted in several countries—including the UAE, Singapore, France, Bhutan, Sri Lanka, and Mauritius—through various bilateral arrangements and international partnerships. The Peru initiative showcases the strong trust that global markets place in India’s digital payments architecture.
Why This Announcement Matters
The interlinking of UPI with TIPS could transform international digital payments in several ways:
1. A New Standard for Cross-Border Payments
The partnership may set a template for other central banks to follow, enabling a globally interconnected instant payments network.
2. Benefits for Indian Migrants and Students in Europe
With faster and cheaper remittances, families will benefit from lower fees and quicker settlements.
3. Boost to Trade and Business Transactions
Indian exporters, freelancers, and service providers will be able to receive payments more efficiently.
4. Strengthened India–EU Financial Cooperation
The collaboration deepens economic and digital ties between two major financial regions.
5. Recognition of UPI as a Global Digital Innovation
This move further establishes UPI as one of the world’s most scalable, secure, and user-friendly payment systems.
Conclusion
The RBI’s announcement on UPI–TIPS interlinking marks a transformative moment for India’s digital payments journey. As India continues to collaborate with global financial systems, UPI is rapidly evolving into an international benchmark for instant payments. With Europe joining the growing list of regions integrating with UPI and countries like Peru preparing to adopt its model, India stands at the centre of a global digital payments revolution.