Breaking: EU and India Bypass SWIFTEU Connects Sovereign Payment Rails Directly to Brics Nation in Unprecedented Move
The European Central Bank has entered new territory by moving to link its TARGET Instant Payment Settlement system with India’s UPI network, marking the first time the EU’s instant-payments infrastructure has been directly connected with a BRICS nation.
NEWS:GFN Mumbai
India and the Euro Area have agreed to begin formal work on linking the country’s Unified Payments Interface (UPI) with the Eurosystem’s TARGET Instant Payment Settlement (TIPS) rail, according to a statement released by the Reserve Bank of India. The move will create a direct cross border instant payment channel between INR and EUR retail systems once technical integration is completed.
The RBI said it has been working with NPCI International and the European Central Bank to align the project with the G20 roadmap that focuses on faster and cheaper remittances. The UPI–TIPS link will allow users in both jurisdictions to send and receive low value payments without relying on SWIFT messaging. According to analysts, the initiative marks an early stage in a broader global trend toward multiple payment rails and increased optionality for cross border flows. The system will operate alongside existing channels, with settlement handled domestically in each currency’s home infrastructure. RBI and the ECB will continue coordinating on technical, risk management, and settlement design as the project advances.
ANALYSIS: Implications of the News.A Retail Link That Alters the Geometry of Cross-Border Payments
The decision by the Reserve Bank of India and the European Central Bank to interlink UPI with TIPS is not a marginal development in global payments. It is a fully operational bridge between two sovereign instant-settlement systems, one belonging to a major emerging-market economy and the other belonging to the Euro Area...
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