RBI, ECB Advance Plans to Link UPI with Europe’s TIPS for Faster Cross-Border Payments
The Reserve Bank of India (RBI) and the European Central Bank (ECB) are moving forward to connect India’s Unified Payments Interface (UPI) with Europe’s instant payment system, TARGET Instant Payment Settlement (TIPS). This strategic linkage aims to enable faster and more efficient cross-border payments between India and the Euro Area.
Key Developments
- RBI and NPCI International Payments Limited (NIPL) are collaborating with the European Central Bank.
- Both sides have agreed to begin the realization phase for the UPI-TIPS link.
- The partnership will focus on technical integration, risk management, and settlement arrangements.
“Following constructive and sustained engagement, both sides have agreed to start the realisation phase for the UPI–TIPS link,” the RBI stated.
The proposed UPI–TIPS interlinkage is expected to significantly streamline cross-border remittances. The parties will work together to finalize technical aspects and operational frameworks to make the fast-payment system interconnection a reality.
“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 central bank added.
UPI Global Acceptance for International Payments
NPCI has launched UPI Global Acceptance (International Merchant Payments), enabling users to make QR code-based payments at select international merchant locations directly from their Indian bank accounts via UPI-powered applications.
How to Use UPI Global/UPI International:
- Prerequisites: Activate the UPI Global/UPI International service for your specified bank account through your UPI application.
- Payment Process: Look for BHIM UPI or network partner acceptance QR codes, scan with your UPI app, verify payment details including foreign currency amount and exchange rates, then enter your UPI PIN to authorize the transaction.
- Both you and the merchant will receive payment notifications upon successful transaction.
