rbi european central bank agree to start realisation phase for upi tips link

In a major step toward creating seamless cross-border digital payments, the Reserve Bank of India (RBI) and the European Central Bank ECB have agreed to enter the realisation phase for linking India’s Unified Payments Interface UPI with Europes TARGET Instant Payment Settlement TIPS system. The decision marks a breakthrough in India–EU financial cooperation and brings the two regions closer to establishing a fast, cost-effective, and secure channel for real-time fund transfers.

The move follows months of technical discussions, feasibility assessments, and regulatory consultations between the two central banks. With the realisation phase now approved, both institutions will commence detailed implementation work, including system integration, compliance checks, settlement frameworks, and cybersecurity protocols. The goal is to enable individuals and businesses in India and the European Union to send and receive money instantly, mirroring the speed and convenience of domestic digital transactions.

UPI, developed by the National Payments Corporation of India (NPCI), has become one of the world’s most successful real-time payment systems, processing billions of transactions each month. TIPS, operated by the ECB, provides instant settlement for euro payments across participating European nations. Connecting the two systems is expected to simplify remittances, reduce the cost of overseas transfers, and enhance economic engagement between India and the EU.

The partnership is especially significant for students, tourists, and professionals living or traveling between the two regions. Once operational, the UPI TIPS link will allow Indian users to make payments in Europe using familiar apps, while European businesses will be able to accept payments without needing international card networks or expensive intermediaries. Similarly, European users will gain easier access to Indian digital payment infrastructure during travel or business engagements.

Officials expect the integration to promote greater financial inclusion by making cross-border transactions more accessible and affordable. For India, the move also strengthens the global presence of UPI, which is steadily expanding through partnerships with countries such as Singapore, the UAE, Nepal, France, and Sri Lanka. The EU, on the other hand, stands to benefit from improved interoperability and enhanced payment efficiency across its member states.

While timelines for the full rollout have not yet been announced, the commencement of the realisation phase indicates that the project has moved beyond conceptual discussions and into execution. Both central banks will now work closely with their respective payment operators, banking networks, and regulatory bodies to chart a secure and scalable cross-border payment framework.

The UPI–TIPS linkage is widely viewed as a strategic milestone for India–EU digital cooperation and a significant advancement in the global adoption of real-time payments.