Filenews 11 December 2024
As of January 9, 2025, Cyprus will adopt the rules of the European Parliament, so that remittances and money transfers to the bank accounts of retail and business customers across Europe will be made 24 hours a day, in 10 seconds, at the minimum cost, as required by the European Directive.
The Central Bank has published on its website all information falling within the scope of Regulation (EU) 2024/886 (Regulation on direct payments). Instant payments allow users to transfer funds, anytime, any day, within ten seconds. They are much faster than traditional credit transfers, which payment service providers (PSPs) only receive during business hours and do not reach the payee's account until the next business day, which can take up to three calendar days. According to the European Commission, traditional credit transfers and cheques "bind" almost €200 billion to the financial system on any given day.
The release of these funds is possible through direct payments, so that they become readily available for economic use, either for consumption or investment, thus contributing to growth.
The Central Bank on its website lists the milestone dates:
By 9 January 2025: banks must receive instant payments.
By 9 October 2025: banks must send instant payments. By 9 April 2027: payment institutions and electronic money institutions must receive and send instant payments.
– By 9 October 2025: payment service providers must offer their customers instant payments through the same payment initiation channels offered for traditional credit transfers.
– By 9 January 2025: any charges for direct payments must not exceed those levied for traditional credit transfers. Charges may be imposed for additional services.
– By 9 January 2025: payment service providers must verify, at least once every calendar day, whether any of their customers are persons or entities subject to targeted financial constraints.
– By 9 October 2025: payment service providers must offer their customers a service to verify the payee to whom the payer intends to send a credit transfer.
