Interlinking of India's UPI and EU's TIPS on anvil: RBI

The Reserve Bank on Friday said the process of interlinking UPI with the Eurosystem's TARGET Instant Payment Settlement (TIPS) is progressing, and it will continue to collaborate closely with the European Central Bank to operationalise cross-border remittances.

Reserve Bank of India and NPCI International Payments Limited (NIPL) have been engaging with the European Central Bank on the initiative to connect UPI with the TIPS, the instant payment system operated by the Eurosystem.

"Following constructive and sustained engagement, both sides have agreed to start the realisation phase for the UPI–TIPS link," it said in a release.

RBI said the proposed UPI–TIPS interlinkage aims to facilitate cross-border remittances between India and the Euro Area and is expected to benefit users of both jurisdictions.

"Reserve Bank of India and NIPL will continue to collaborate closely with European Central Bank to operationalise the UPI–TIPS link, including technical integration, risk management and settlement arrangements," it added.

RBI has been actively pursuing interlinking of Unified Payments Interface (UPI) with fast payment systems of other jurisdictions to promote cross-border payments.

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.