Following discussions with the European Central Bank to link UPI with Europe’s TIPS instant payments system, the Reserve Bank of India (RBI) has started the implementation phase of UPI-TIPS integration in collaboration with NPCI International Payments Ltd.
TARGET Instant Payment Settlement or TIPS is an instant payment system operated by the Eurosystem, which consists of the European Central Bank and the central banks of the eurozone countries.
NPCI International Payments Ltd (NIPL) is the international subsidiary of National Payments Corporation of India.
The UPI-TIPS link will facilitate cross-border transfers between India and the Eurozone and is expected to benefit users on both sides.
“The Reserve Bank of India and NIPL will continue to work closely with the European Central Bank to operationalize the UPI-TIPS linkage, including technical integration, risk management and settlement arrangements,” RBI said in a statement on Friday.
Reduction of transfer costs
The UPI-TIPS nexus, once operational, is expected to significantly reduce transfer costs and settlement frictions for millions of users who send or receive money between India and the Eurozone.
The integration is also expected to increase merchant acceptance for Indian travelers in Europe, similar to the QR-based rollout already underway in markets such as Singapore.
The move comes at a time when the RBI is actively seeking to link UPI with other areas’ fast payment systems to support cross-border payments. UPI, or Unified Payments Interface, is India’s digital payment system that enables instant 24×7 money transfers between bank accounts through a mobile app.
These initiatives are in line with the G20 plan to strengthen cross-border payments with a focus on cheaper, more efficient, transparent and accessible remittances, the RBI said in a statement.
In March 2025, NIPL partnered with HitPay, Singapore’s payments infrastructure, to expand UPI acceptance across the island nation.
HitPay will enable QR code-based UPI transactions at retail stores, restaurants, tourist attractions and more.
The development comes at a time when India is rapidly expanding the global reach of its rapid payments infrastructure. The central bank is pursuing several corridors, most recently with countries in Asia and the Middle East, to emulate UPI’s domestic success in the international remittance ecosystem.
“The proposed UPI-TIPS initiative is more than just payment connectivity; it is a signal that India has become the global benchmark for real-time payments. Real-time, low-friction movement of money between India and Europe can significantly boost exporters, creators and the digital economy of SMEs. For fintechs, this marks the beginning of a new era where India’s payment infrastructure is not only connected to international but unpredictable global markets.” simplicity,” said Akash Sinha, CEO and co-founder of Cashfree Payments.
