The European Central Bank is commencing work to interlink the Eurosystem’s Target Instant Payment Settlement (Tips) with India’s Unified Payment Interface and other real-time payment rails across Asia.
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The effort is part of the Eurosystem’s overall goal to make it easier for businesses and consumers in Europe to send and receive payments to and from other countries, including remittances.
The decision follows the positive findings of exploratory work with Inidan and Asian interfaces initiated in October 2024.
The ECB says it intends to start the ‘realisation phase’ for interlinking Tips with UPI while in parallel completing the legal arrangements and technical implementation. UPI has one of the largest instant payment transaction volumes in the world and India is among the top ten recipients of euro area remittances.
The ECB says it will adopt a similar approach with Nexus Global Payments, the multilateral payments scheme that will initially connect the fast payment systems of Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore, the Bank of Thailand and the Reserve Bank of India.
The long-term ambition is to extend this work to additional currency corridors, says the ECB, pointing to an exploratory study with Swiss Interbank Clearing as an example.