RBI–ECB Move to Implement UPI–TIPS Link for Faster Remittances

Press Release: 2025-2026/1549, Dated 21-11-2025.

1. Overview

The Reserve Bank of India (RBI) and NPCI International Payments Ltd. (NIPL), in coordination with the European Central Bank (ECB), have agreed to advance to the implementation (realisation) phase for the linkage between India’s Unified Payments Interface (UPI) and the Euro Area’s TARGET Instant Payment Settlement (TIPS) system.

2. Objective of the UPI–TIPS Link

The proposed connection aims to enable:

• Faster cross-border remittances,
• Cheaper fund transfers, and
• More transparent payment flows

between India and the Euro Area, strengthening financial connectivity between the two regions.

UPI–TIPS integration is expected to significantly benefit individuals and businesses by offering a seamless channel for instant payments across borders.

3. Progress Toward Implementation

After a period of constructive and sustained engagement, all sides have agreed to begin the realisation phase, which involves:

• Technical integration work,
• Alignment of settlement rules, and
• Development of operational processes and testing frameworks.

This marks a major step forward in operationalising cross-border instant payments between India and the European monetary zone.

4. Significance

The linkage is expected to:

• Enhance ease of remittances for Indian diaspora and travellers,
• Support trade and financial flows,
• Promote interoperability between major global payment infrastructures, and
• Strengthen India–EU financial cooperation.

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