India is set to make cross-border digital payments simpler and more affordable. The Reserve Bank of India (RBI) has announced that the country’s Unified Payments Interface (UPI) will soon be integrated with the European Central Bank’s Target Instant Payment Settlement (TIPS) platform.
This major step will allow instant and low-cost money transfers between India and European nations, benefiting millions of Indian students, workers, and professionals living abroad.
What is TIPS?
TIPS is the European Central Bank’s real-time instant payment system, connecting banks across more than 30 countries. It works like Europe’s version of UPI. After months of discussions, RBI and NPCI International have agreed with the ECB to begin the process of linking UPI with TIPS.
Key Benefits of UPI–TIPS Integration
- Instant cross-border transfers between India and Europe
- Lower bank fees and currency conversion charges
- Direct benefits for Indian residents, students, and workers in Europe
- UPI payments for Indian tourists in many European countries
UPI is already accepted in countries such as Singapore, the UAE, France, Mauritius, Bhutan, and Nepal. Connecting it to TIPS—Europe’s largest payment settlement network—will significantly expand UPI’s international reach.
Part of the G20 Vision
RBI said the move aligns with the G20 goal of making global payments faster, cheaper, and more secure. India has actively pushed for the worldwide adoption of UPI during its G20 presidency. Technical work on integration, risk management, and settlement processes will now begin to enable the rollout of UPI-TIPS connectivity soon.