India Integrates UPI with Eurozone TIPS for Enhanced Remittances

Post by : Bianca Suleiman

In a pivotal advancement for international digital transactions, the Reserve Bank of India (RBI) revealed on Friday the integration of India’s Unified Payments Interface (UPI) with the Eurosystem’s TARGET Instant Payment Settlement (TIPS). This development aims to streamline and expedite remittance processes between India and the Euro Area.

The RBI, in partnership with NPCI International Payments Limited (NIPL), has actively collaborated with the European Central Bank (ECB) to forge this link. TIPS, the Eurosystem's instant payment service, will now connect directly to UPI, facilitating real-time cross-border money transfers.

This initiative is part of the RBI’s comprehensive plan to broaden UPI’s global presence. The central bank has previously explored the possibility of linking UPI with various international rapid payment frameworks, with the goal of making cross-border transactions more economical, quicker, and clearer.

The linkage of UPI and TIPS aligns with the G20’s strategy for improving cross-border payment efficiency. By lowering transaction expenses and reducing processing durations, the initiative is expected to serve both individuals and businesses engaged in remittances between India and Europe.

In related news, other nations are beginning to take note of India’s real-time payment ecosystem. For example, Peru is set to unveil a UPI-like digital payment system by 2024, marking the first South American country to adopt India’s UPI technology. This follows a collaboration between NIPL and Peru's Central Reserve Bank (BCRP) to execute instant digital payment solutions, showcasing India’s expanding role in the global fintech arena.

The RBI and NIPL have stated that efforts are ongoing to facilitate the smooth implementation of UPI-TIPS. Key priorities include technical integration, settlement protocols, and risk management frameworks, ensuring users experience a smooth and secure remittance process.

With this integration, India’s UPI has made another remarkable stride toward achieving global recognition in digital payments, connecting continents and revolutionizing international money transfers to be easier and more effective than ever.