UPI to interlink with European instant payment system TIPS

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India’s popular mobile payments system Unified Payments Interface (UPI) will be interlinked with European instant payment system TARGET Instant Payment Settlement (TIPS), the Reserve Bank of India said in a statement.

“RBI and NPCI International Payments Limited (NIPL) have been engaging with European Central Bank on the initiative to connect UPI with the TARGET Instant Payment Settlement (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,” RBI said.

NPCI runs UPI, the country's most popular digital payments platform facilitating over 20 billion transactions in a month worth around Rs 27 lakh crore.

The central bank has been taking initiatives to link India's domestic payment systems with other countries as part of the G20 roadmap for enhancing cross-border payments.

“Reserve Bank of India has been actively pursuing interlinking of Unified Payments Interface (UPI) with fast payment systems of other jurisdictions to promote cross-border payments,” the statement added.

The regulator’s focus has been to bring cheaper, efficient, more transparent and more accessible remittances to the vast diaspora of the country.

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, according to the statement by the central bank.

RBI said that it will continue to collaborate closely with European Central Bank through NIPL to operationalise the UPI-TIPS link, including technical integration, risk management and settlement arrangements.