RBI Initiates UPI-TIPS Link for Enhanced India-Eurozone Payments

The Reserve Bank of India (RBI) has commenced the integration of its Unified Payments Interface (UPI) with the TARGET Instant Payment Settlement (TIPS) system in Europe. This collaboration aims to simplify and enhance cross-border payment transactions between India and the eurozone, thereby facilitating remittances and promoting India's digital payment infrastructure globally.

Details of the Integration

Following discussions with the European Central Bank (ECB), the RBI is now in the implementation phase of the UPI-TIPS interlinkage. This project is being carried out in collaboration with NPCI International Payments Ltd (NIPL), the international arm of the National Payments Corporation of India.

TIPS is an instant payment system managed by the Eurosystem, which encompasses the European Central Bank and the central banks of the eurozone nations. The partnership seeks to create a seamless payment solution for users on both sides of the transaction.

In a statement, the RBI noted, “The Reserve Bank of India and NIPL will continue to collaborate closely with the European Central Bank to operationalise the UPI-TIPS link, including technical integration, risk management and settlement arrangements.”

Benefits Expected

Once fully operational, the UPI-TIPS connection is anticipated to significantly lower transaction costs and reduce settlement barriers for millions of users transferring funds between India and the eurozone. Furthermore, this integration is expected to enhance the acceptance of Indian payment methods among merchants in Europe, mirroring existing QR code systems already being implemented in places like Singapore.

The RBI's initiative is part of a broader strategy to link UPI with fast payment systems globally, thereby advancing cross-border payment efficiencies. UPI is India's homegrown digital payment platform that enables instant money transfers between bank accounts via mobile applications, operational 24 hours a day, seven days a week.

Alignment with Global Initiatives

This initiative aligns with the G20 Roadmap aimed at improving cross-border payments, which emphasises the need for cost-efficient, transparent, and accessible remittance options. In March 2025, NIPL established a partnership with HitPay, a Singapore-based payments company, further expanding UPI's reach in Southeast Asia by facilitating QR code transactions at various retail outlets and attractions.

As India continues to enhance its role in the global digital payment landscape, the RBI has been actively pursuing partnerships with several countries in Asia and the Middle East to replicate UPI's domestic success internationally.

Industry Insights

Akash Sinha, CEO and Co-founder of Cashfree Payments, remarked, “The proposed UPI-TIPS initiative is more than a payments link; it signifies India’s rise as a global standard for real-time payments. The easy and efficient transfer of funds between India and Europe could significantly empower exporters, content creators, and the digital small and medium-sized enterprise (SME) sector.”

This development marks a significant step towards creating a globally interconnected payment ecosystem that allows Indian businesses to engage with international markets seamlessly.