Regulation (EU) 2024/886 amending Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and (EU) 2015/2366 as regards instant credit transfers in euro

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Series Details 2024/886
Publication Date 19/03/2024
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Summary:

Regulation (EU) 2024/886 - adopted by the co-legislators on 13 March 2024 - introducing amendments to Regulation (EU) No 260/2012, Regulation (EU) 2021/1230, Directive 98/26/EC and Directive (EU) 2015/2366 to make instant payments in the Euro currency available to citizens and businesses holding a bank account in the European Union (EU) and in EEA countries. This is a text with EEA relevance.

Further information:

Instant payments (IPs) are a form of credit transfer whereby funds pass from the payer's account to the payee's in a matter of seconds, at any time and any day of the year. In the European Union (EU), the architecture for IPs in euro already exists. It comprises several payment systems offering instant settlement, and the Single Euro Payments Area (SEPA) instant credit transfer scheme launched in 2017 by the European Payments Council. Regulation (EU) No 260/2012 set out the rules and technical requirements for credit transfers and direct debit transactions in Euro within the SEPA . Regulation (EU) 2021/1230 codified the legislative framework on cross-border payments in the EU.

The potential benefits of IPs to consumers and businesses in the EU have been impeded by the slow rollout and low uptake of IPs. In a Communication published in December 2018, the European Commission supported a fully integrated IP market in the EU, and in another Communication adopted in September 2020, it announced that it might propose legislation requiring payment service providers to offer IPs in euro by end-2021. In a Communication published in January 2021, the Commission reiterated the importance of its Retail Payments Strategy and of digital innovation in finance as a way of strengthening the single market for financial services.

This Regulation makes instant payments fully available in Euro to consumers and businesses in the EU and in EEA countries. It includes a review clause with a requirement for the Commission to present a report containing an evaluation of the development of credit charges.

The draft law was announced in the Commission's 2022 Work Programme. It was eventually adopted by the European Commission on 26 October 2022. The Council of the European Union adopted its general approach to the proposal on 22 May 2023. The plenary of the European Parliament endorsed a negotiating position on 12 July. An informal agreement between the co-legislators on a compromise text for this file was reached on 7 November. This was formally endorsed by the Parliament on 7 February 2024 and by the Council on 26 February. The Act was signed by the co-legislators on 13 March 2024 and published in the Official Journal on 19 March 2024.

Source Link http://data.europa.eu/eli/reg/2024/886/oj
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Commentary and Analysis
Times of Malta: Opinion, 02/11/2022: EU initiatives regulating instant payments https://timesofmalta.com/articles/view/eu-initiatives-regulating-instant-payments.991673
Linklaters: FintechLinks Blog, 05/01/2023: EU plans to push banks to provide instant payment services https://www.linklaters.com/en/insights/blogs/fintechlinks/2023/january/eu-plans-to-push-banks-to-provide-instant-payment-services
Finextra: Blog, 19/12/2023: A new frontier for instant payments in the EU https://www.finextra.com/blogposting/25419/a-new-frontier-for-instant-payments-in-the-eu
European Parliamentary Research Service (EPRS): At a Glance, 31/01/2024: Instant payments in euro https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2023)747447

News
Euronews, 26/10/2022: EU pushes for banks to offer instant payments in euros at no extra cost https://www.euronews.com/next/2022/10/26/eu-pushes-for-banks-to-offer-instant-payments-in-euros-at-no-extra-cost
Reuters, 26/10/2022: Bank instant payment shift to help business and consumers, says EU https://www.reuters.com/markets/europe/seismic-shift-bank-payments-help-business-consumers-says-eu-2022-10-26/
Bloomberg, 26/10/2022: EU Plans ‘Seismic Shift’ to Usher In 10-Second Bank Transfers https://www.bloomberg.com/news/articles/2022-10-26/eu-aims-to-accelerate-use-by-banks-of-instant-payments-in-euros
The Sofia Globe, 27/10/2022: EC proposes to accelerate rollout of instant payments in euro https://sofiaglobe.com/2022/10/27/ec-proposes-to-accelerate-rollout-of-instant-payments-in-euro/
Independent.ie, 27/10/2022: EU wants bank transfers to be cheap and instant across the bloc https://www.independent.ie/business/personal-finance/banking/eu-wants-bank-transfers-to-be-cheap-and-instant-across-the-bloc-42096735.html
EurActiv, 07/02/2024: Fast money: European Parliament greenlights ‘instant payment’ law https://www.euractiv.com/section/economy-jobs/news/fast-money-european-parliament-greenlights-instant-payment-law/

Official
EUR-LEX: COM(2022)546: Proposal for a Regulation amending Regulations (EU) No 260/2012 and (EU) 2021/1230 as regards instant credit transfers in euro https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2022:546:FIN
EUR-LEX: SWD(2022)546: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2022:546:FIN
EUR-LEX: SWD(2022)547: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2022:547:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Instant payments in euro (2022/0341(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2022/0341(COD)
European Parliament: Legislative Train Schedule: Instant payments in euro https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-instant-payments
European Central Bank (ECB): Payments & Markets: What are instant payments? https://www.ecb.europa.eu/paym/integration/retail/instant_payments/html/index.en.html
European Commission: Press Release, 26/10/2022: Payments: Commission proposes to accelerate the rollout of instant payments in euro https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6272
European Commission: Questions and Answers on the Commission's proposal to promote euro instant payments (26 October 2022) https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_6273
European Commission: Remarks by Executive Vice-President Dombrovskis at the Press conference on the Commission's proposal for a regulation on instant payments (26 October 2022) https://ec.europa.eu/commission/presscorner/detail/en/statement_22_6409
European Commission: Remarks by Commissioner McGuinness at the Press conference on the Commission's proposal for a regulation on instant payments (26 October 2022) https://ec.europa.eu/commission/presscorner/detail/en/statement_22_6410
Council of the European Union: Press Release, 22/05/2023: Capital markets union: Council agrees its position on the instant payments proposal https://www.consilium.europa.eu/en/press/press-releases/2023/05/22/capital-markets-union-council-agrees-its-position-on-the-instant-payments-proposal/
Council of the European Union: Press Release, 07/11/2023: Instant payments: Council and Parliament reach provisional agreement https://www.consilium.europa.eu/en/press/press-releases/2023/11/07/instant-payments-council-and-parliament-reach-provisional-agreement/
European Commission: Remarks by Commissioner McGuinness during the European Parliament Plenary debate on the Instant Payments Regulation (5 February 2024) https://ec.europa.eu/commission/presscorner/detail/en/speech_24_659
Renew Europe EP Group: Newsroom, 07/02/2024: Instant Payments revolution is here: the new standard across Europe for the benefit of consumers and businesses! https://www.reneweuropegroup.eu/news/2024-02-07/instant-payments-revolution-is-here-the-new-standard-across-europe-for-the-benefit-of-consumers-and-businesses
Council of the European Union: Press Release, 26/02/2024: Council adopts regulation on instant payments https://www.consilium.europa.eu/en/press/press-releases/2024/02/26/council-adopts-regulation-on-instant-payments/

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