The European Payments Council (EPC), the governing body of the Single Euro Payments Area (SEPA), has designated October 5 as the date for Montenegrin banks to achieve operational readiness for SEPA payment schemes.

The Central Bank of Montenegro (CBCG) has revealed that starting from October 5, individuals and businesses in Montenegro will be able to execute initial transactions through the SEPA system, which facilitates quicker and more affordable money transfers across the European Union and beyond.

“This decision comes after the EPC’s update announced on January 15 and marks a crucial advancement toward aligning the Montenegrin payment system with European standards,” the statement noted.

The established date allows Montenegrin banks, payment service providers, and SEPA payment system participants in other countries to further coordinate technical aspects, educate users, and optimize procedures for a seamless connection and service delivery through SEPA payment schemes.

“In light of the extensive technical support and ongoing monitoring of banks in the Montenegrin market, the CBCG anticipates that a considerable portion of our market will be operationally ready by the end of June, despite the EPC setting October 5 as the formal operational readiness date,” the statement added.

The EPC’s decision pertains to the technical modifications required for over 3,500 banks already integrated into the SEPA system, facilitating the integration of the Montenegrin market and compliance with the new SCT Inst rules that take effect on October 5.

“These SCT Inst rules mandate instant payments for all banks within the SEPA zone, allowing transactions to be completed in under ten seconds, available 24/7/365, without extra costs unlike standard SEPA transfers. Additionally, enhanced security measures will be implemented, including verification of the correspondence between IBAN and the recipient’s name, necessitating coordinated efforts and implementation within the banking sector of the SEPA market,” stated the Central Bank of Montenegro.

According to the EPC’s operational timeline, Montenegrin banks can start submitting applications to join the SEPA payment schemes on April 18, with a submission deadline of August 22 to ensure readiness by October.

“In this context, banks in Montenegro, in collaboration with the Central Bank of Montenegro, are proactively working towards meeting these deadlines to successfully integrate into the SEPA system,” the statement emphasized.

By adopting the SEPA payment system, citizens and businesses in Montenegro will benefit from faster, safer, and significantly more economical payment transactions within the European Union and beyond. This transition will enhance transaction efficiency, lower business expenses, and augment Montenegro’s connectivity with European markets, ultimately fostering economic integration and bolstering the competitiveness of the Montenegrin financial sector.

News