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RBI Begins Implementation To Link UPI With Europe’s TIPS Instant Payments

The aim is cheaper, faster cross-border remittances in line with the G20 payments roadmap.

Overview

  • Following sustained engagement, both sides agreed to start the realisation phase to interconnect the systems.
  • RBI and NPCI International Payments Ltd will work with the European Central Bank on technical integration, risk management and settlement arrangements.
  • The planned corridor is intended to enable real-time, lower-cost transfers between India and the euro area, and no launch date has been announced.
  • The move goes beyond prior Europe efforts that focused on merchant acceptance through partners such as Worldline to pursue system-level money movement.
  • Recent linkages such as Singapore’s PayNow connection and Bahrain’s Fawri+ tie-up provide precedents for the operational model now being developed with the Eurosystem.