RBI: India has achieved another major milestone on the digital payments front. The Reserve Bank of India (RBI) has announced that India’s Unified Payments Interface (UPI) will soon be integrated with the European Central Bank’s Target Instant Payment Settlement system. This move will make sending and receiving money between India and European countries easier, faster, and cheaper than ever before. Millions of Indians, students, and workers living in Europe will directly benefit from this.
What are TIPS?
TIPS is a real-time payment system operated by the European Central Bank, connecting banks in more than 30 European countries. It is considered a fast payment network similar to UPI in Europe. The RBI and NPCI International have been discussing the integration of UPI with TIPS with the European Central Bank for several months. Now, both parties have agreed to begin the implementation phase of the UPI-TIPS link.
What will be the benefit?
Remittances between India and Europe will be able to reach instantly.
Bank charges and forex fees can be significantly lower.
Direct benefit to millions of Indians living in Europe.
Facility to make payments through UPI for Indian tourists in many European countries.
UPI is now accepted in several countries, including Singapore, the UAE, France, Mauritius, Bhutan, and Nepal. Integrating with TIPS, Europe’s largest payment system, will further expand this digital network.
Part of the G20 agenda
The RBI stated that this initiative aligns with the G20’s roadmap, which aims to promote affordable, fast, and secure cross-border payments worldwide. India, during its G20 presidency, pushed for globalizing UPI. The results are now visible. The RBI, NIPL, and the European Central Bank will now work on technical integration, risk management, and settlement systems to enable the early launch of UPI-TIPS interlinking.