On 21 November 2025, the Reserve Bank of India (RBI) announced a major step toward transforming international payments: the interlinking of India’s Unified Payments Interface (UPI) with the TARGET Instant Payment Settlement (TIPS) system of the Eurosystem. This milestone marks a significant advancement in global payment connectivity and promises to reshape how individuals and businesses send and receive money between India and the Euro Area.
A Big Boost to Cross-Border Payment Efforts
Over the past few years, India has emerged as a global leader in digital payments—driven largely by UPI’s unmatched adoption and efficiency. In parallel, RBI has been working toward connecting UPI with fast payment systems of other countries to make cross-border transfers cheaper, faster, and more accessible. These efforts are directly aligned with the G20 Roadmap for enhancing cross-border payments, which emphasizes transparency, lower costs, and universal access.
The latest announcement reflects the success of these ongoing efforts. After sustained engagement between RBI, NPCI International Payments Limited (NIPL), and the European Central Bank (ECB), both sides have now agreed to commence the realisation phase for the UPI–TIPS link.
What Is TIPS and Why It Matters
TIPS—short for TARGET Instant Payment Settlement—is an instant payment system operated by the Eurosystem. It enables real-time fund transfers across participating European countries, 24×7, much like UPI does within India. By connecting these two platforms, users in both regions could experience seamless, low-cost, real-time remittances.
This interlinkage is expected to benefit:
- Indian residents sending money to Europe, whether for education, family support, travel, or business;
- Europe-based individuals and businesses, especially the large Indian diaspora;
- Cross-border e-commerce, which often suffers delays and high transaction costs.
What the Realisation Phase Involves
Now that both sides have agreed to move forward, the next step is operationalization. RBI and NIPL will work closely with the ECB to address three critical components:
- Technical Integration – Establishing a secure and scalable technical pathway that allows the two systems to communicate.
- Risk Management – Ensuring compliance, fraud prevention, data protection, and cybersecurity standards across both jurisdictions.
- Settlement Arrangements – Designing efficient and transparent mechanisms for currency conversion and settlement between INR and EUR.
Once completed, this will lay the foundation for a truly global payment corridor.
A Leap Toward the Future of Global Fintech
The UPI–TIPS link is more than a technological achievement—it is a symbol of growing financial cooperation between India and Europe. As digital payments become increasingly global, such initiatives will play a pivotal role in building a connected world where money moves as easily as information.
With India’s UPI already expanding to countries in Asia and the Middle East, Europe’s inclusion represents a major stride toward establishing UPI as a global payments benchmark.