Reserve Bank of India (RBI) and NPCI International Payments Ltd (NIPL) on one hand and European Central Bank on the other, to connect Unified Payments Interface (UPI) with the TARGET Instant Payment Settlement (TIPS), the instant payment system operated by the Eurosystem, have agreed to start the realisation phase for the UPI–TIPS link.

The proposed UPI–TIPS interlinkage will facilitate cross-border remittances between India and the Euro Area and is expected to benefit users of both jurisdictions, the RBI said in a statement. 

The RBI and NIPL will continue to collaborate closely with European Central Bank to operationalize the UPI–TIPS link, including technical integration, risk management and settlement arrangements, it said. 

The RBI had been actively pursuing interlinking of UPI with fast payment systems of other jurisdictions to promote cross-border payments.

 These initiatives are aligned with the G-20 Roadmap for enhancing cross-border payments, with a focus on cheaper, efficient, more transparent and more accessible remittances.