The Reserve Bank of India (RBI) is planning to link India’s Unified Payments Interface (UPI) with Europe’s instant payment system, TARGET Instant Payment Settlement (TIPS).
This move aims to make cross-border payments between India and Europe faster and cheaper.
RBI, along with NPCI International Payments Limited (NIPL), is in discussions with the European Central Bank to operationalize the UPI–TIPS connection.
According to RBI, both sides have agreed to start the implementation phase following months of talks and planning.
How UPI–TIPS Will Benefit Cross-Border Payments
Once operational, the UPI–TIPS interlinkage will simplify remittances and payments for individuals and businesses between India and the Euro area.
The collaboration will focus on technical integration, risk management, and settlement arrangements to ensure smooth and secure transactions.
This means money transfers between India and European countries could happen almost instantly, reducing costs and delays compared to traditional banking channels.
UPI Global Acceptance: Pay Internationally with QR Codes
Even before the full TIPS link, India’s NPCI has already rolled out UPI Global Acceptance, allowing Indian users to make payments at select international merchants using QR codes.
Here’s how it works:
Activate UPI Global: Enable UPI Global/UPI International on your bank account via a UPI app.
Look for acceptance logo: Ensure the merchant displays a BHIM UPI or partner QR code.
Scan and pay: Scan the QR code using your UPI app and check the payment details, including exchange rates.
Authorize payment: Enter your UPI PIN to complete the transaction.
Both you and the merchant receive instant payment confirmation.
This feature already lets Indian users pay at select international locations directly from their Indian bank accounts.
