(MENAFN- Live Mint) After discussions with the European Central Bank on linking UPI with Europe's TIPS instant payment system, the Reserve Bank of India (RBI) has started the implementation phase of the UPI–TIPS integration in partnership with NPCI International Payments Ltd.

TARGET Instant Payment Settlement, or TIPS, is an instant payment system operated by the Eurosystem, which consists of the European Central Bank and the central banks of eurozone countries.

NPCI International Payments Ltd (NIPL) is the international subsidiary of National Payments Corporation of India.

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The interlinking of UPI–TIPS will facilitate cross-border remittances between India and the eurozone, and is expected to benefit users on both sides.

“Reserve Bank of India and NIPL will continue to collaborate closely with European Central Bank to operationalize the UPI–TIPS link, including technical integration, risk management and settlement arrangements,” the RBI said in a statement on Friday.

Reducing transfer costs

The UPI–TIPS link, once operational, is expected sharply reduce transfer costs and settlement friction for millions of users who send or receive money between India and the eurozone.

The integration is also expected to boost merchant acceptance for Indian travellers in Europe, similar to the QR-based roll-outs already underway in markets such as Singapore.

The move comes as the RBI has been actively pursuing interlinking of UPI with fast payment systems of other areas to promote cross-border payments. UPI, or unified payments interface, is India's digital payment system that allows instant, 24×7 money transfers between bank accounts through a mobile app.

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These initiatives are aligned with the G20 Roadmap for enhancing cross-border payments, with a focus on cheaper, efficient, more transparent and more accessible remittances, the RBI's statement said.

In March 2025, NIPL partnered with HitPay, a Singapore-based payments infrastructure, to expand UPI's acceptance across the island nation.

HitPay will enable QR code-based UPI transactions at retail stores, restaurants, tourist attractions, and more.

These developments come at a time when India is rapidly expanding the global footprint of its fast-payment infrastructure. The central bank has been pursuing multiple corridors, most recently with countries in Asia and the Middle East, to replicate UPI's domestic success in the international remittance ecosystem.

“The proposed UPI–TIPS initiative is more than a payments link; it is a signal of India's emergence as a global benchmark for real-time payments. Real-time, low-friction movement of money between India and Europe can significantly uplift exporters, creators and the digital SME economy. For fintechs, this marks the beginning of a new era where Indian payment infrastructure is not just world-class, but globally interconnected, enabling businesses here to engage with international markets with unprecedented simplicity,” said Akash Sinha, CEO and Co-founder, Cashfree Payments.

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