On November 21, 2024, Montenegro became a member of the SEPA geographical area (Single Euro Payment Area), thereby gaining the right for its banking system, together with the Central Bank of Montenegro (CBCG), to begin the process of joining SEPA payment schemes. This process includes both technical and regulatory preparations.
Accordingly, on April 1, 2025, the CBCG submitted a formal application to the European Payments Council (EPC) to join the SEPA payment schemes. Thanks to strong coordination with the banking sector, all banks in Montenegro obtained approval to access the SEPA system by June 13, 2025, and were registered as participants in the SEPA Credit Transfer (SCT) scheme at the EPC.
October 6, 2025, marks a key milestone when Montenegrin banks will begin operational use of the SEPA payment system, enabling faster, safer, and more affordable euro transactions for citizens and businesses.
Legal Framework and Regulatory Measures
On July 9, 2025, the CBCG adopted a reform package that brings concrete benefits for citizens and businesses. It consists of three acts that liberalize the movement of funds, speed up domestic and international transactions, and introduce European pricing and standards:
- Decision on limiting the amount of fees for credit transfers executed in the SEPA area;
- Rules on amendments to the Rules of Operation of the CBCG payment system;
- Decision on amendments to the tariff schedule for CBCG payment services.
What This Means for Citizens and Businesses?
According to item (1), starting October 6, 2025, banks may not charge citizens or businesses more than:
- first daily transfer by an individual up to €200: maximum €0.02;
- electronic transactions up to €20,000: maximum €1.99;
- electronic transactions over €20,000: maximum €25.00;
- deposits at a branch up to €20,000: maximum €3.99;
- deposits at a branch over €20,000: maximum €50.00;
- receiving SEPA transfers up to €20,000: maximum €1.99, and for larger amounts up to €25.00.
According to item (2), starting August 18, 2025, the operating hours of the domestic payment system will be extended. The RTGS system (for transactions above €1,000) will operate until 20:00, and the DNS system (for transactions below €1,000) until 19:30, with six clearing cycles per day. From mid-October 2025, the systems will also operate on weekends, while from July 2026, with the introduction of the TIPS Clone platform, payments will be available 24/7.
According to item (3), the CBCG will abolish the surcharge of 30% previously applied to transactions executed after 14:00. A single, lower tariff will apply for the entire operational day (08:00–20:00), ensuring fair and transparent conditions without extra afternoon costs.
Benefits for the Banking Sector
The introduction of SEPA payments provides Montenegrin banks with significant benefits through reduced operational costs and improved efficiency. The implementation of SEPA instant payments will enable banks to offer faster and more secure services, increasing trust and competitiveness in the market.
Benefits for Businesses and Citizens
SEPA payments enable more efficient, cheaper, and safer cross-border euro transactions, reducing business costs and facilitating the integration of Montenegro’s economy into the European economic area. Citizens benefit from more favorable conditions for sending and receiving money, as well as greater transparency and security in payment transactions.
Costs of IT System Alignment
Implementing the SEPA system required substantial investments in modernizing banks’ IT infrastructure. Adjustments to SEPA XML message formats, implementation of IBAN and BIC identifiers, and compliance with European security regulations — including the PSD2 directive and strong customer authentication (SCA) principles — were mandatory. Although initial costs were high, long-term savings are expected through process automation and error reduction.
Introduction of Instant Payments in Domestic Transactions
On May 26, 2025, the Central Bank of Montenegro launched the new generation of the national payment system – RTS/X. This represents the most significant functional and technological change since its establishment in 2005. The new system introduced online clearing, enabling interbank transactions of up to €1,000 to be processed throughout the day without waiting for fixed clearing cycles, allowing users almost immediate access to their funds.
Legal Consequences of Non-Compliance
Failure to meet SEPA standards and rules may result in CBCG sanctions, including fines and operational restrictions. Banks are also contractually liable to customers for delays or errors in transaction execution, which could negatively impact their reputation and client trust.
By Alma Karadjuzovic Djindjinovic, Partner, JPM Montenegro