UPI goes global: RBI plans integration with Eurozone’s TIPS

By Vriti Gothi

The Reserve Bank of India has initiated efforts to interlink India’s Unified Payments Interface(UPI) with the TARGET Instant Payment Settlement system of the Eurosystem, establishing the framework for real-time and low-cost cross-border payments between India and countries within the eurozone. The initiative is widely viewed as a significant step in advancing global payments interoperability and strengthening the efficiency of international fund transfers, particularly at a time when digital commerce and cross-border trade are expanding rapidly.

UPI, which processes billions of transactions each month domestically, has become a central component of India’s digital public infrastructure and a reference point for real-time payment innovation. Its proposed linkage with TIPS, a settlement platform operated by the Eurosystem that enables instant transfers in euros, reflects a growing willingness among central banks to explore collaborative mechanisms that remove long-standing barriers in cross-border payments. The integration is expected to reduce settlement time from days to seconds, bring greater transparency to transaction fees and currency conversion, and create a seamless experience for individuals and businesses moving funds across regions.

The move carries strategic implications for both financial institutions and the broader FinTech ecosystem. For Indian exporters, including small and medium-scale enterprises and digitally native merchants, the ability to receive payments from Europe in near real-time could improve working capital cycles and reduce dependency on costly intermediary networks. Similarly, for students, gig-economy workers, and families sending remittances, the corridor has the potential to meaningfully lower transfer costs while increasing reliability and transaction visibility.

Industry stakeholders have welcomed the initiative as a defining moment in the evolution of India’s digital payments capabilities into a globally connected infrastructure. Akash Sinha, CEO and Co-founder of Cashfree Payments, noted, “The development represents more than incremental progress. The proposed UPI–TIPS initiative is more than a payments link; it is a signal of India’s emergence as a global benchmark for real-time payments. Real-time, low-friction movement of money between India and Europe can significantly uplift exporters, creators and the digital SME economy. For FinTechs, this marks the beginning of a new era where Indian payment infrastructure is not just world-class, but globally interconnected, enabling businesses here to engage with international markets with unprecedented simplicity.”

The integration aligns with international efforts to modernise cross-border payment infrastructure and reflects a shift away from traditional correspondent banking arrangements, which have historically been slow, costly, and opaque. It also contributes to the broader trend of central banks and regulators examining how national real-time payment systems may interoperate to support trade, tourism, remittance flows, and digital commerce. For India, the initiative reinforces the growing role of its payments framework as an exportable model that can support financial inclusion and digital growth beyond domestic boundaries.

However, the path to full implementation will require collaboration across regulatory, technical, and operational dimensions. The design of settlement mechanisms, foreign-exchange processes, risk-management frameworks and customer protection standards will be crucial in determining adoption and long-term sustainability. Banks, payment service providers and merchants on both sides will need to integrate infrastructure and create user-level interfaces that support smooth transaction experiences. Industry observers also note that pricing structures and currency conversion mechanisms could shape competitive dynamics in the cross-border payments market, potentially accelerating innovation among FinTechs and financial institutions seeking to differentiate offerings.