RBI and ECB to link UPI with European payment system

By Vriti Gothi

The RBI has moved into the “realisation phase” of linking India’s UPI with the Eurozone’s TIPS system, marking a key step toward enabling instant, low-cost cross-border payments between the two regions. The initiative is expected to significantly improve the speed and affordability of transactions for consumers and businesses, strengthening remittances, trade flows and broader payments interoperability.

The initiative, developed in coordination with the European Central Bank (ECB) and facilitated by NPCI International Payments Ltd. (NIPL), aligns with the G20 Roadmap for enhancing cross-border payments. The roadmap emphasises improving speed, lowering transaction costs, and ensuring greater transparency and accessibility in global remittances.

According to the RBI, substantial engagement between Indian and European authorities has paved the way for technical work to begin. The planned interlinkage aims to enable instant cross-border remittances between India and the European Union, expanding UPI’s global reach and offering euro-area users a direct channel to transact with India’s increasingly digital payment ecosystem.

The RBI stated that the collaboration will now focus on technical integration, risk management and settlement design critical components in connecting two high-volume, real-time payment systems across jurisdictions.

The proposed link mirrors a broader trend of countries exploring interoperability between domestic fast-payment systems to reduce reliance on traditional correspondent banking networks. If successfully implemented, the UPI–TIPS connection could set a precedent for similar bilateral arrangements and support India’s efforts to position UPI as a key enabler in global payments modernisation.

Both RBI and NIPL said they will continue working closely with the ECB to operationalise the connection, with the expectation that users in both regions will benefit from quicker and more efficient remittance flows once the system goes live.