EU New Rules Speed Up Instant Payments
The new rules of the EU will expedite the process of conducting intra-eurozone payments to just 10 seconds, thereby completing the creation of a single capital market within the union.
According to information released by the press service, the European Union Council has adopted a resolution expanding access to instant euro payments for individuals and legal entities in the EU and countries of the European Economic Area (EEA).
This resolution amends the Settlement Finality Directive (SFD), granting payment institutions (PIs) and electronic money institutions (EMIs) access to instant payment systems. This means that such institutions will be obliged to provide instant money transfer services. Instant payment operators will also be required to verify the compatibility of the International Bank Account Number (IBAN) with the recipient’s name to prevent errors and combat fraud.
According to the announcement, these measures will allow citizens to make transfers in just 10 seconds at any time of day, even on non-working days, not only within one country but also between different EU member states.
Banks conducting standard euro transfers will also be required to provide instant euro payment services without increasing fees compared to regular payments.
The new rules will take effect after a transitional period, which will proceed faster in the eurozone and slower in EU countries that do not use the euro as their primary currency.
These changes are considered the final stage of creating a single capital market in the European Union, aimed at ensuring the free flow of investments and savings for all member states in the interest of their citizens, businesses, and investors.
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