look news india
India has achieved another major achievement on the digital payments front. The Reserve Bank of India (RBI) has announced that India’s Unified Payments Interface (UPI) will soon be linked to the European Central Bank’s Target Instant Payment Settlement System. This move will make it easier, faster and cheaper than ever to send and receive money between India and European countries. This will directly benefit millions of Indians, students and workers living in Europe.
What is TIPS?
TIPS is a real-time payment system operated by the European Central Bank, which connects banks in more than 30 European countries. It is considered a fast payment network similar to UPI in Europe. RBI and NPCI International have been discussing the integration of UPI with TIPS by the European Central Bank for several months. Now, both parties have agreed to begin the implementation phase of the UPI-TIPS link.
What will be the benefit of this?
The facility to send money between India and Europe will be available immediately.
Bank charges and foreign exchange charges can be reduced significantly.
Direct benefit to millions of Indians living in Europe.
Indian tourists will be able to pay through UPI in many European countries.
UPI is now accepted in many countries including Singapore, UAE, France, Mauritius, Bhutan and Nepal. Integration with TIPS, Europe’s largest payment system, will further expand this digital network.
Part of the G20 agenda
RBI said the initiative is in line with the G20 roadmap, which aims to promote affordable, fast and secure cross-border payments across the world. India had emphasized on globalization of UPI during its presidency of G20. Its results are now visible. RBI, NIPL and European Central Bank will now work on technical integration, risk management and settlement systems to enable early UPI-TIPS interlinking.