New Delhi [India], November 21 (ANI): In a significant move, the Reserve Bank of India (RBI) on Friday has announced the interlinking of Unified Payments Interface (UPI) with the TARGET Instant Payment Settlement (TIPS) of the Eurosystem.

The proposed UPI-TIPS interlinkage aims to 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.

Reserve Bank of India and NPCI International Payments Limited (NIPL) have been engaging with European Central Bank on the initiative to connect UPI with the TARGET Instant Payment Settlement (TIPS), the instant payment system operated by the Eurosystem, it added.

Notably, the Reserve Bank of India has been actively pursuing interlinking of Unified Payments Interface (UPI) with fast payment systems of other jurisdictions to promote crossborder payments.

These initiatives are aligned with the G20 Roadmap for enhancing cross-border payments, with a focus on cheaper, efficient, more transparent and more accessible remittances.

Reserve Bank of India 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, the statement read.

Recently, while speaking with ANI, Peruvian Ambassador Javier Manuel Paulinich Velarde told Peru will also implement by next year the UPI-like real-time digital payments system.

NIPL and the Central Reserve Bank of Peru (BCRP) had first announced a landmark partnership to introduce the real-time payments system in Peru in 2024.

Once implemented, it will make Peru the first South American country to adopt the Unified Payment Interface (UPI) technology. (ANI)