UPI–TIPS Link to Boost India–EU Payments

Current Context: On 21 November 2025, the Reserve Bank of India (RBI) announced the UPI–TIPS interlinkage. It connects India’s Unified Payments Interface (UPI) with Europe’s TARGET Instant Payment Settlement (TIPS).

• The move was made in collaboration with the European Central Bank (ECB) and NPCI International Payments Ltd.
• It aims to strengthen India–EU cross-border payments, making remittances faster, cheaper, and more transparent.
• The initiative aligns with the G20 Roadmap for enhancing global payment systems.
• This marks India’s first major linkage with a European payment system, expanding UPI’s global reach.

Question:

Q.1 Which European instant payment system has been linked with India’s Unified Payments Interface (UPI)?
a) SEPA Instant
b) RT1
c) TARGET Instant Payment Settlement (TIPS)
d) EBA Clearing

Answer: c) TARGET Instant Payment Settlement (TIPS) is the pan-European instant payment settlement service operated by the Eurosystem (ECB and national central banks) in euro.