Reserve Bank of India (RBI) and NPCI International Payments Ltd (NIPL) on one hand and European Central Bank on the other, to connect Unified Payments Interface (UPI) with the TARGET Instant Payment Settlement (TIPS), the instant payment system operated by the Eurosystem, have agreed to start the realisation phase for the UPI–TIPS link.

The proposed UPI–TIPS interlinkage will facilitate cross-border remittances between India and the Euro Area and is expected to benefit users of both jurisdictions, the RBI said in a statement. 

The RBI and NIPL will continue to collaborate closely with European Central Bank to operationalize the UPI–TIPS link, including technical integration, risk management and settlement arrangements, it said. 

The RBI had been actively pursuing interlinking of UPI with fast payment systems of other jurisdictions to promote cross-border payments.

 These initiatives are aligned with the G-20 Roadmap for enhancing cross-border payments, with a focus on cheaper, efficient, more transparent and more accessible remittances.

NPCI International Payments Ltd (NIPL), the international arm of the National Payments Corporation of India (NPCI), has entered into a tie up with BENEFIT, Bahrain’s fintech and electronic financial transactions company, to enable real-time cross-border remittances between India and Bahrain. 

This linkage will connect India’s Unified Payments Interface (UPI) with Bahrain’s Electronic Fund Transfer System (EFTS), specifically, Fawri+ service, allowing users in both countries to send and receive money instantly and securely.

The tie up, established under the guidance of the Reserve Bank of India (RBI) and the Central Bank of Bahrain (CBB), is towards advancing cross-border payment connectivity between the two nations.

It will enable residents to experience faster, more efficient, and cost-effective remittances, reflecting the shared vision to enhance digital financial inclusion and modernize cross-border transaction frameworks, NPCI International said.

By linking UPI and Fawri+ service, the initiative aims to establish a strategic remittance corridor between India and Bahrain, enhancing convenience for the large Indian community in Bahrain, which constitutes nearly 30% of the country’s population, it said.

This collaboration will strengthen financial connectivity, enable transparent and secure real-time transfers, and deepen economic integration between the two nations, it added.

Ritesh Shukla, MD & CEO, NPCI International, said, “We believe this collaboration will deepen financial connectivity, pave the way for further cross-border payment innovations, and contribute to promoting financial inclusion and shared economic growth that benefits individuals and businesses alike.”

“The initiative will also serve the large Indian diaspora in Bahrain, making money transfers faster, safer, and more convenient,” he added. 

Abdulwahed AlJanahi, Chief Executive, BENEFIT said, “The new service will enable citizens and residents in both countries to send and receive money instantly and securely, reflecting our continuous efforts to meet the growing demand for fast, reliable, and cross-border financial solutions.”

Once live, this facility will enhance digital connectivity and build an efficient, real-time payment ecosystem, NPCI International said.