RBI and European Central Bank Initiate Linking of Domestic Payment Systems to Boost Cross-Border Transfers

In a landmark move announced on November 21, 2025, the Reserve Bank of India (RBI) and the European Central Bank (ECB) have agreed to commence the initial stage of integrating their domestic payment systems. This initiative will connect India’s widely used Unified Payments Interface (UPI) with the Eurosystem’s instant payment platform, TARGET Instant Payment Settlement (TIPS).

The linkage reflects a growing effort to facilitate seamless cross-border remittances, benefiting individuals and businesses by reducing transaction times and costs. It aligns with the G20 roadmap to enhance cross-border payments by making them more efficient, accessible, and transparent.

The RBI, through NPCI International Payments Limited (NIPL), will collaborate closely with the ECB to implement the technical integration, risk management, and settlement protocols required for the UPI-TIPS link to become fully operational. This connection will particularly support the extensive Indian diaspora in Europe and businesses engaged in transcontinental trade.

India's UPI system is now operational in 13 countries, enhancing digital payment accessibility globally, with Europe being a key next step in its expansion.

Key Highlights:

RBI and European Central Bank agree to start initial linking phase of domestic payment systems.

UPI (India) to be linked with Eurosystem’s TARGET Instant Payment Settlement (TIPS).

Initiative aimed at faster, cheaper, transparent cross-border remittances.

Collaboration includes technical integration, risk management, and settlement arrangements.

Supports G20 roadmap for improved cross-border payments.

UPI operational in 13 countries, expanding global reach.

Enhances convenience for Indian diaspora and businesses in Europe.

Sources: Reuters, European Central Bank, Moneycontrol, ANI News, Economic Times​