CBCG: Strong and measurable decrease in costs for users visible in the first two months of SEPA implementation

In Montenegro, a strong and measurable decrease in costs for users has been visible in the first two months of SEPA implementation, the Central Bank (CBCG) announced.

The second session of the National Payments Committee was held today at the Central Bank of Montenegro, chaired by Vice Governor Zorica Kalezić.

It is stated that the meeting discussed the results of the first two months of full implementation of the SEPA standard in Montenegro, the status of the TIPS Clone project, as well as other current issues, and the members of the Committee were presented with data from the Central Bank of Montenegro on developments after Montenegro's entry into SEPA.

"In the first two months of SEPA implementation, a strong and measurable decrease in costs for users has been visible," the statement said.

It is stated that from October 7 to December 7, the SEPA payment system is rapidly taking on a dominant role among individuals.

"The participation of the SEPA system is 78 percent for transactions up to 200 euros and 65,9 percent for transactions up to 20 thousand euros. The average SEPA fee for electronic channels for individuals was only 2,24 euros, while the average SWIFT fee for the same transactions was 66,8 euros, which means that SWIFT was almost 30 times more expensive," the statement added.

It is noted that the economy has also recorded strong initial results, with approximately half of international flows switching to SEPA across all value categories.

"For legal entities, the SEPA electronic fee was 6,4 euros, while SWIFT was 46,9 euros, which represents a seven-fold higher cost," the statement said.

The Central Bank of Montenegro said that the members of the Committee were informed about the progress of the TIPS Clone project, of which the Central Bank is the implementer, and which is being implemented in cooperation with the Bank of Italy, with the support of the World Bank.

It was highlighted that North Macedonia has officially joined the initiative and that five Western Balkan countries are now working on implementing national instant payment systems.

The Central Bank of Montenegro said that bank project teams have been formed in Montenegro, and the exchange of project documentation and regular reporting on progress have been established.

"Expert teams of the Central Bank of Montenegro and commercial banks, within their competence, are carrying out preparatory activities to adapt the system for integration with the TIPS Clone platform, as well as other necessary procedures in various segments of this project," the statement says.

The meeting discussed issues delegated by commercial banks, including the issue of future instant payment regulations, especially in terms of transaction limits, fees, and relations with the existing DNS system.

It is stated that one of the topics was the possibility of improving the model of forced collection of accounts of individuals, and initiatives to improve the process of salary payment through digitalization and standardization of data exchange, as well as issues related to the application of ISO 20022 standards in budget payments.

"The National Payments Board represents a key platform for coordination between the Central Bank of Montenegro, banks, state and other relevant institutions, with the aim of implementing reform processes in payments in a manner that ensures system stability, user protection and faster integration of Montenegro into the European financial area," the statement says.