The Reserve Bank of India (RBI)is actively advancing efforts to interlink the **Unified Payments Interface (UPI) with fast payment systems across global jurisdictions to enhance the efficiency of cross-border payments. These initiatives align with the G20 Roadmap for improving cross-border payments, which emphasizes making international transfers cheaper, faster, more transparent, and more accessible.

As part of this effort, the RBI, along with NPCI International Payments Limited (NIPL), has been working closely with the European Central Bank (ECB) to integrate UPI with the TARGET Instant Payment Settlement (TIPS) system—an instant payment infrastructure operated by the Eurosystem. After sustained technical and strategic engagement, both parties have agreed to commence the realisation phase of the UPI–TIPS interlinkage project.

Expected Benefits

The upcoming UPI–TIPS connectivity will:

* Enable instant cross-border remittances between India and countries in the Euro Area.

* Enhance convenience and reduce transfer time for users in both jurisdictions.

* Contribute to the global adoption of interoperable real-time payment systems.

Next Steps

RBI and NIPL will continue collaboration with the ECB to finalize:

* Technical integration and system architecture

* Risk management frameworks

* Settlement and operational arrangements

The UPI-TIPS linkage marks a major step forward in positioning India as a global leader in digital payments and strengthening financial connectivity with Europe.

What Banks Need to Know — Quick Checklist

* Assess system readiness for integrating cross-border instant payment capabilities using UPI infrastructure.

* Align compliance and AML/CFT frameworks with cross-border remittance requirements for Euro Area transactions.

* Review settlement and reconciliation processes, including forex conversion handling and fee structures.

* Prepare customer communication and awareness plans highlighting benefits such as real-time transfer and reduced cost.

* Track regulatory updates from RBI, NPCI, ECB, and internal compliance teams regarding implementation timelines.

* Coordinate with technology partners / CBS vendors for required upgrades and testing before activation.

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