RBI begins linking payments system with Europe’s instant payment settlement

The proposed linkage is expected to facilitate cross-border remittances.

The Reserve Bank of India (RBI) said that it has begun to interlink its unified payments interface (UPI) with the TARGET instant payment settlement (TIPS) of Europe.

"Following constructive and sustained engagement, both sides have agreed to start the realisation phase for the UPI–TIPS link,” India’s central bank said in a statement on its website.

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, the RBI said.

Both the RBI and the NPCI International Payments Limited said that they will continue to collaborate closely with the European Central Bank to operationalize the UPI–TIPS link, including technical integration, risk management and settlement arrangements.