RBI Announces Integration of UPI with European TIPS for Cross-Border Payments

The Reserve Bank of India (RBI) has announced a significant development regarding the interlinking of Unified Payments Interface (UPI) with the TARGET Instant Payment Settlement (TIPS) of the Eurosystem on Friday.

New Delhi:

The RBI revealed plans for the integration of UPI with TIPS, a move designed to enable cross-border remittances between India and the Euro Area. This initiative is expected to deliver benefits to users in both jurisdictions, according to the official statement released by the RBI.

The Reserve Bank of India and NPCI International Payments Limited (NIPL) have been collaborating with the European Central Bank on this project to connect India's UPI with the Eurosystem-operated TIPS instant payment system.

The RBI has been proactively pursuing the interconnection of UPI with fast payment systems in other jurisdictions to enhance cross-border payment capabilities.

These efforts align with the G20 Roadmap that aims to improve cross-border payments by making remittances more affordable, efficient, transparent, and accessible.

Both the RBI and NIPL will maintain close collaboration with the European Central Bank to fully operationalize the UPI-TIPS connection, which involves technical integration, risk management protocols, and settlement arrangements.

In a recent development, Peruvian Ambassador Javier Manuel Paulinich Velarde told ANI that Peru plans to implement a UPI-like real-time digital payments system by next year.

NIPL and the Central Reserve Bank of Peru (BCRP) had previously announced a partnership to introduce a real-time payments system in Peru during 2024.

Upon implementation, Peru will become the first South American nation to adopt the Unified Payment Interface (UPI) technology.