Adoption of law a condition for instant payments

Montenegro is set to receive the national instant payment system TIPS Clone from July 20, which will allow money to be transferred between accounts within seconds, 24 hours a day, seven days a week. In order for the system to start operating on schedule, it is necessary for the Parliament to adopt amendments to the Law on Payment Transactions, which are currently in the parliamentary procedure, by then.

Of particular note are the provisions of this law that define the obligations of payment service providers regarding the execution of instant credit transfers, payment transactions that will operate 24 hours a day, 365 days a year. The above will be made possible by the start of operation of the TIPS Clone, a payment system for instant payments, which, based on the model of the same system applied in the EU, is provided by the Bank of Italy to the central banks of the countries of the region. The start of operation of this new payment system is scheduled for the second half of 2026. Therefore, these provisions enable a transparent legal framework for the execution of instant payments, aligned with similar requirements for such payments in the EU, while at the same time preventing market fragmentation and uneven application among payment service providers," the explanatory memorandum to the amendments to the Payment Transactions Law states.

The Council of the Central Bank of Montenegro (CBCG) noted at its session held on July 3 that the supreme monetary institution and the banking sector have completed key infrastructural, technical and operational activities necessary for the start of operations of the national instant payment system, TIPS Clone, which is planned for July 20 this year.

Governor of the Central Bank of Montenegro Irena Radović and Governor of the Bank of Italy Fabio Panetta signed a letter of intent in early January 2025 for the implementation of the TIPS Clone project, which will enable instant, real-time payments in Montenegro.

The Central Bank of Montenegro previously explained that the TIPS Clone allows Montenegro to establish a modern instant payment system aligned with European standards, preparing for a smooth transition to the original TIPS system, after entering the European Union (EU).

"TIPS Clone represents an additional step towards Montenegro's integration into the European payments area, enabling alignment with SEPA standards and facilitating the transition to the cross-border SEPA instant scheme," explained the Central Bank of Montenegro.

At the beginning of October 2025, Montenegro became part of the single payments area - SEPA, which enabled citizens and businesses to send and receive money within the SEPA zone significantly faster, cheaper and more secure, on an equal footing with forty European countries, including all EU members.