EUROPEAN UNIONTHE EUROPEAN PARLIAMENT

THE COUNCIL
Brussels, 14 February 2024
(OR. en)2022/0341 (COD)

PE-CONS 76/23

EF 383ECOFIN 1324
CODEC 2360

LEGISLATIVE ACTS AND OTHER INSTRUMENTS
Subject:

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL 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

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

EN

REGULATION (EU) 2024/…
OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of …
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
(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114
thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee1,
Having regard to the opinion of the European Central Bank2,
Acting in accordance with the ordinary legislative procedure3,

1
2
3

OJ C 146, 27.4.2023, p. 23.
OJ C 106, 22.3.2023, p. 2.
Position of the European Parliament of 7 February 2024 (not yet published in the Official
Journal) and decision of the Council of …

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

1EN

Whereas:(1)

Regulation (EU) No 260/2012 of the European Parliament and of the Council4 provides thefoundation for the single euro payments area (SEPA). To create favourable conditions forincreased competition, in particular for payments at the point of interaction (POI), theSEPA project should be continuously updated to reflect innovation and market
developments in payments, promote the development of new Union-wide payment
products, and facilitate access for new market entrants.

(2)

In 2017, a Union-wide scheme for the instant execution of credit transfers in euro wasagreed between payment service providers (PSPs) under the auspices of the European
Payments Council. The efforts of the European payments industry have not provensufficient to ensure a high uptake of instant credit transfers in euro at Union level. Only awidespread and rapid increase in such uptake could unlock the full-scale network effects of
instant credit transfers in euro, leading to benefits and economic efficiency gains forpayment service users (PSUs) and PSPs, reduced market concentration, and increased
competition and choice of electronic payments, in particular for cross-border payments at
the POI.

4

Regulation (EU) No 260/2012 of the European Parliament and of the Council of
14 March 2012 establishing technical and business requirements for credit transfers anddirect debits in euro and amending Regulation (EC) No 924/2009(OJ L 94, 30.3.2012, p. 22).

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

2

EN

(3)

Regulation (EU) No 260/2012 established technical and business requirements for credit
transfers and direct debits in euro. Instant credit transfers in euro are a relatively new
category of credit transfers in euro which emerged on the market only after the adoption ofthat Regulation. It is therefore necessary to establish specific requirements applicable toinstant credit transfers in euro, in addition to the general requirements applicable to allcredit transfers, to ensure the proper functioning and integration of the internal market.

(4)

To make instant credit transfers more accessible and to widen their benefits to PSUs,
Member States whose currency is not the euro should be able to apply equivalent rules tothose laid down in this amending Regulation to domestic instant credit transfers in theirown currency.

(5)

A number of national regulatory solutions have already been adopted or proposed toincrease the uptake of instant credit transfers in euro, including by strengthening theprotection of PSUs from sending funds to an unintended payee and by specifying theprocess of compliance with obligations flowing from restrictive measures adopted by theUnion. The differences among those national regulatory solutions pose a risk offragmentation of the internal market that would result in the increase of compliance costs
due to different sets of national regulatory requirements and a more difficult execution ofcross-border instant credit transfers. Uniform rules on instant credit transfers in euro,
including cross-border instant credit transfers, should therefore be introduced to prevent
such obstacles from arising.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

3

EN

(6)

Prior to the emergence of instant credit transfers, payment transactions were generally
bundled by PSPs and submitted to a retail payment system for processing, clearing andsettlement purposes at pre-specified times. However, in retail payment systems currently
used to process instant credit transfers in euro, payment transactions are submitted
individually and processed round the clock and in real time. To reflect that, it is necessary
to amend the definition of the term ‘retail payment system’ inRegulation (EU) No 260/2012.

(7)

Ensuring that all PSUs in the Union are able to place payment orders for, and receive,
instant credit transfers in euro is a precondition for an increased uptake of suchtransactions. Currently, at least one third of PSPs in the Union do not offer the payment
service of sending and receiving instant credit transfers in euro. Moreover, the rate at
which PSPs have been introducing instant credit transfers into their range of services has
been, over the last few years, too slow, which hinders further integration of the internalmarket, undermines the Union’s open strategic autonomy and limits potential benefits for
PSUs. Therefore, PSPs providing the payment service of sending and receiving credit
transfers in euro to their PSUs should be required to offer the payment service of sending
and receiving instant credit transfers in euro to all of their PSUs. That requirement should
apply with respect to all payment accounts which PSPs maintain for their PSUs, including
payment accounts with basic features referred to in Directive 2014/92/EU of the European
Parliament and of the Council5.

5Directive 2014/92/EU of the European Parliament and of the Council of 23 July 2014 on thecomparability of fees related to payment accounts, payment account switching and access to
payment accounts with basic features (OJ L 257, 28.8.2014, p. 214).

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

4

EN

(8)

To create an integrated market for instant credit transfers in euro, it is essential that suchtransactions are processed in accordance with a common set of rules and requirements.
An instant credit transfer in euro enables funds to be credited to the account of the payee
within seconds and round the clock. The round-the-clock availability every day of the year
is an intrinsic feature of instant credit transfers, which should meet specific conditions,
including as regards the time of receipt of payment orders, processing, crediting and value
dating.

(9)

The European Central Bank (ECB) and national central banks, when not acting in theircapacity as monetary authorities or other public authorities, should be able to limit theoffer of a payment service of sending instant credit transfers in euro to the period of time
during which the ECB and national central banks offer the payment service of sending andreceiving non-instant credit transfers in euro. The reason to allow that limitation is that it
may be necessary in order for the ECB or a national central bank, due to specificities of its
internal operational arrangements, to comply with Article 123 of the Treaty on the
Functioning of the European Union (TFEU) at all times.

(10)

PSPs located in a Member State whose currency is not the euro could have limited accessto liquidity in euro outside of business hours. Therefore, it is proportionate to provide forthe possibility that such PSPs request the prior permission of their competent authorities toprovide the payment service of sending instant credit transfers from accounts denominatedin the national currency of that Member State outside of business hours only up to a certain
limit per transaction. Competent authorities should be able to grant such permission basedon their assessment of a PSP’s access to liquidity in euro.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

5

EN

(11)

There exist a variety of payment initiation channels in the Member States through which
PSUs can place a payment order for a credit transfer in euro, for example, via online
banking, a mobile application, an automated teller machine, a self-service terminal, in abranch or by phone. To ensure that all PSUs have access to instant credit transfers in euro,
there should be no difference in terms of the payment initiation channels through which
PSUs can place payment orders for instant credit transfers and other credit transfers.
Moreover, where it is possible for a PSU to submit multiple payment orders for credit
transfers in euro as a package to a PSP, it should also be possible to submit multiple
payment orders for instant credit transfers in euro as a package. PSPs should be able tooffer all credit transfers in euro initiated by their PSUs as instant credit transfers in euro bydefault.

(12)

Since some payment initiation channels, such as bank retail locations, are not available
round the clock, the time of receipt of a paper-based payment order for an instant credit
transfer should be the moment when the paper-based payment order is introduced into theinternal system of the payer’s PSP, which should occur as soon as such payment initiation
channels are available.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

6

EN

(13)

Where a PSU submits multiple payment orders for instant credit transfers as a package to
its PSP, that PSP should immediately start to unpack that package so as to turn it into
individual instant credit transfer transactions. The time of receipt of a payment order for an
instant credit transfer submitted in a package of multiple payment orders should be themoment when the ensuing individual instant credit transfer transaction has been unpacked,
taking into account any capacity constraints of a retail payment system which have beencommunicated to the payer’s PSP. Immediately upon unpacking, the payer’s PSP should
transmit that individual instant credit transfer transaction to the payee’s PSP. Thattransmission should occur without prejudice to possible solutions to be provided by retailpayment systems which allow for the conversion of multiple payment orders for instantcredit transfers as packages into individual instant credit transfer transactions.

(14)

Where a payment order for an instant credit transfer in euro is submitted from a payment
account that is not denominated in euro, the time of receipt of that payment order should be
the moment when the payer’s PSP, immediately after that payment order for an instantcredit transfer in euro has been placed with it, converts the amount of the transaction into
euro from the currency in which the payment account is denominated.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

7

EN

(15)

Payment institutions and electronic money institutions should contribute to facilitating theuptake of instant credit transfers in euro and should therefore be subject to therequirements of this amending Regulation. However, payment institutions and electronicmoney institutions are not included in the list of entities which fall under the definition of
the term ‘institution’ in Directive 98/26/EC of the European Parliament and of theCouncil6. Consequently, payment institutions and electronic money institutions are
effectively prevented from participating in systems designated by Member States pursuant
to that Directive. The resulting inability to participate in such payment systems can impede
payment institutions and electronic money institutions from providing instant credit
transfers in euro efficiently and competitively. It is therefore justified to amend
Directive 98/26/EC in order to include payment institutions and electronic money
institutions in the list of entities which fall under the definition of the term ‘institution’ inthat Directive, but only for the purpose of defining participants of a payment system.

6

Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on
settlement finality in payment and securities settlement systems(OJ L 166, 11.6.1998, p. 45).

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

8

EN

(16)

Payment institutions and electronic money institutions should meet the requirements andrespect the rules of payment systems designated by Member States pursuant to
Directive 98/26/EC to be allowed to participate in those systems. Given the importance ofthe potential contribution of payment institutions and electronic money institutions tofacilitating the uptake of instant credit transfers in euro, and the importance of restoring thelevel playing field between banks and those institutions as soon as possible, it is necessary
to grant Member States a short deadline for transposing and applying the amendments to
Directive 98/26/EC, and appropriate deadlines for applying this amending Regulation to
payment institutions and electronic money institutions. In order to ensure a proper levelplaying field for participants in systems designated by Member States pursuant to that
Directive, to maintain the stability and integrity of those systems and to ensure acomprehensive risk management by payment institutions and by electronic money
institutions, it is necessary to further elaborate, for payment institutions and electronicmoney institutions requesting participation and participating in such systems designated by
Member States pursuant to Directive 98/26/EC, certain provisions of
Directive (EU) 2015/2366 of the European Parliament and of the Council7. Those
provisions concern the safeguarding of users’ funds, governance arrangements andbusiness continuity arrangements. It is anticipated that the amendments to
Directive (EU) 2015/2366 will be further reviewed by the European Parliament and theCouncil when they consider the Commission proposal for a Directive of the European
Parliament and of the Council on payment services and electronic money services in theInternal Market amending Directive 98/26/EC and repealing Directives (EU) 2015/2366
and 2009/110/EC and the Commission proposal for a Regulation of the European
Parliament and of the Council on payment services in the internal market and amending
Regulation (EU) No 1093/2010.

7

Directive (EU) 2015/2366 of the European Parliament and of the Council of
25 November 2015 on payment services in the internal market, amending Directives
2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, andrepealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35).

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

9

EN

(17)

PSUs are very sensitive to the level of charges for substitutable payment methods. The
level of charges can therefore steer them towards or away from a given payment method.
In national markets where higher transaction-level charges for instant credit transfers ineuro have been applied, when compared to charges for other credit transfers in euro, theuptake of instant credit transfers is low. That has prevented the attainment of the criticalmass of instant credit transfers in euro that is necessary to realise the full network effects
for both PSPs and PSUs. Therefore, all types of charges applied to payers and payees forthe execution of instant credit transfers in euro, including per-transaction charges or lumpsum charges, should not exceed such charges applied to the same PSU for corresponding
types of other credit transfers in euro. It would be undesirable that PSPs circumvent theaim of that requirement. When identifying corresponding types of credit transfers, it should
be possible to use criteria including the payment initiation channel or the payment
instrument used to initiate the payment, customer status, and additional features orservices.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

10

EN

(18)

Ubiquitous instant credit transfers in euro offer opportunities for PSPs to develop new
payment solutions, such as mobile payment applications, facilitating the use of instantcredit transfers in euro for payments at the POI. Such payment solutions could include
additional features or services offered to payers and payees, such as payment initiation,
dispute resolution or refunds. PSPs should be able to decide on the charges for such
additional features or services on top of the underlying instant credit transfer. An instantcredit-transfer-based payment solution encompassing additional features or services should
not be considered to be of corresponding nature to a non-instant credit transfer offeredwithout the same additional features or services. Where it is possible for a PSU to submit
payment orders for non-instant credit transfers without any additional features or services,
the same possibility should also be available for instant credit transfers in euro. It should beensured that, from the PSU’s perspective, it is not more expensive to send or receive an
instant credit transfer in euro than it is to send or receive a non-instant credit transfer ineuro provided with the same additional features or services. In particular, PSPs offering
different variants of a payment solution where the only distinguishing characteristic
between them would be the use of instant credit transfers in one and non-instant in theother, should ensure that the total charge for the instant credit transfer in euro variant is nothigher than the charge for the non-instant credit transfer in euro variant.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

11

EN

(19)

In order to allow PSUs greater discretion when making use of instant credit transfers, a
PSU should be able to set an individual limit fixing a maximum amount, either on a dailyor per transaction basis, that it can send by means of instant credit transfer. PSUs should be
able to modify or lift those individual limits at any time, without difficulty and withimmediate effect.

(20)

Security of credit transfers in euro, both instant and non-instant, is fundamental forincreasing PSUs’ confidence in the payment service of sending and receiving credit
transfers and ensuring its use. Under Directive (EU) 2015/2366, the only determinant of
the correct execution of the transaction with respect to the payee is the unique identifier, as
defined in that Directive, and PSPs are not required to verify the name of the payee.
PSPs should have in place robust and up-to-date fraud detection and prevention measures,designed to prevent a credit transfer from being sent to an unintended payee as a result offraud or error, given that it might not be possible for the payer to recover the funds before
those funds are credited to the payee’s account. PSPs should have a certain degree of
flexibility in designing the most suitable measures for dealing with different payment
initiation options. Such measures should not result in PSUs incurring any additionalcharges or fees. PSPs should therefore provide a service ensuring verification of the payee
to whom the payer intends to send a credit transfer (service ensuring verification).
To avoid undue friction or delays in the processing of the transaction, the payer’s PSP
should perform such service immediately after the payer provides the relevant information
about the payee and before the payer is offered the possibility of authorising the credit
transfer.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

12

EN

(21)

Some attributes of the name of the payee to whose account the payer wishes to make acredit transfer, such as the presence of diacritics or different possible transliterations ofnames in different alphabets, differences between habitually used names and names
indicated on formal documents, might result in a situation where the name of the payee
provided by the payer and the name associated with the payment account identifier,specified in point (1)(a) of the Annex to Regulation (EU) No 260/2012 (payment accountidentifier), which was provided by the payer, do not match exactly but nevertheless almost
match. In such cases, to avoid undue friction in the processing of credit transfers in euro
and facilitate the payer’s decision whether to proceed with the intended transaction, thePSP should indicate to the payer the name of the payee associated with the payment
account identifier provided by the payer in a manner which ensures compliance with
Regulation (EU) 2016/679 of the European Parliament and of the Council8.

8Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016
on the protection of natural persons with regard to the processing of personal data and on thefree movement of such data, and repealing Directive 95/46/EC(General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

13

EN

(22)

Authorising a credit transfer where the payee has not been verified can result in the funds
being transferred to an unintended payee. PSPs should not be held liable for the executionof a transaction to an unintended payee on the basis of an incorrect unique identifier, as
laid down in Article 88 of Directive (EU) 2015/2366, insofar as PSPs correctly perform theservice ensuring verification. However, where PSPs, including payment initiation service
providers, fail to correctly perform such service and where such failure results in a
defectively executed payment transaction, such PSPs should refund the payer thetransferred amount without delay and, where applicable, restore the debited payment
account to the state in which it would have been had the payment transaction not takenplace. PSPs should inform PSUs of the implications for PSP liability and PSU refund
rights of the choice of the PSUs to ignore a notification provided in accordance with thisamending Regulation.

(23)

The service ensuring verification should as far as possible be carried out in accordancewith a Union-wide set of rules and standards in order to encourage a smooth andinteroperable implementation. That set of rules and standards could be developed byorganisations composed of, or representing, PSPs.

(24)

PSUs that are not consumers and that submit multiple payment orders as a package shouldbe able to opt out from receiving the service ensuring verification at any time during theircontractual relationship with the PSP. After opting out from receiving the service ensuring
verification, those PSUs should be able to opt in to avail themselves again of the service
ensuring verification.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

14

EN

(25)

It is of critical importance that PSPs comply effectively with their obligations stemmingfrom restrictive measures adopted by the Union in accordance with Article 215 TFEU inrespect of a person, body or entity that is subject to an asset freeze or a prohibition on
making funds or economic resources available to it, or for its benefit, either directly or
indirectly (targeted financial restrictive measures). Union law, however, does not lay down
rules on the procedure or tools to be used by PSPs to ensure their compliance with thoseobligations. PSPs thus apply various methods, based on their individual choice or on theguidance provided by the national authorities concerned. The practice of complying withobligations stemming from targeted financial restrictive measures by screening the payer
and the payee involved in each credit transfer transaction, whether national or cross-border,
leads to a very high number of credit transfers being flagged as potentially involving
persons or entities subject to targeted financial restrictive measures. However, the large
majority of such flagged transactions turn out, after verification, not to involve any of thepersons or entities subject to targeted financial restrictive measures. Due to the nature of
instant credit transfers, it is impossible for PSPs to verify, within the required short time
limit, those flagged transactions and, as a result, they are rejected. That situation creates
operational challenges for PSPs to offer the payment service of sending and receiving
instant credit transfers to their PSUs across the Union in a reliable and predictable way. To
provide for greater legal certainty, to increase the efficiency of PSPs’ efforts to comply, inthe context of instant credit transfers in euro, with their obligations stemming from targetedfinancial restrictive measures and to prevent unnecessary hindering of sending andreceiving instant credit transfers, PSPs should periodically, and at least daily, verify
whether their PSUs are persons or entities subject to targeted financial restrictive measures,and should no longer apply transaction-based screening in that specific context. The
obligation of PSPs to periodically verify their PSUs is related only to persons or entities
subject to targeted financial restrictive measures. Other types of restrictive measures
adopted in accordance with Article 215 TFEU or restrictive measures that are not adopted
in accordance with Article 215 TFEU fall outside the scope of that obligation.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

15

EN

(26)

To prevent the initiation of instant credit transfers from payment accounts belonging topersons or entities subject to targeted financial restrictive measures and to immediately
freeze funds sent to such payment accounts, PSPs should carry out verifications of their
PSUs immediately following the entry into force of a new targeted financial restrictive
measure. That obligation should apply to all PSPs sending or receiving instant credit
transfers in euro, thereby ensuring that all PSPs comply in an effective manner with their
obligations stemming from targeted financial restrictive measures. The obligation of PSPs
to periodically verify whether their PSUs are persons or entities subject to targetedfinancial restrictive measures does not interfere with actions that PSPs should be able totake to comply with Union law on the prevention of money laundering and terrorist
financing, in particular with its risk-based requirements, to comply with restrictive
measures, other than an asset freeze or a prohibition on making funds or economic
resources available, that are adopted in accordance with Article 215 TFEU, or to comply
with restrictive measures that are not adopted in accordance with Article 215 TFEU.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

16

EN

(27)

Infringements of the provisions introduced by this amending Regulation should be subject
to penalties, imposed by the competent authorities or judicial authorities of theMember States. Such penalties should be effective, proportionate and dissuasive. To
facilitate mutual trust among PSPs and among the relevant competent authorities in theuniform and thorough implementation of a harmonised approach to compliance with PSP
obligations stemming from targeted financial restrictive measures, it is in particularappropriate to harmonise a mutual standard across the Union for the ceiling of the penalties
to be imposed for the infringement by PSPs of their obligations to verify whether their
PSUs are persons or entities subject to targeted financial restrictive measures. It should bepossible to impose penalties not only on PSPs, but also on natural persons who aremembers of the senior management or management body of a PSP.

(28)

PSPs need sufficient time to meet the obligations laid down in this amending Regulation. It
is therefore appropriate to introduce those obligations gradually, allowing PSPs a more
efficient use of their resources. The obligation to offer the payment service of sending
instant credit transfers should therefore apply later, preceded by the obligation to offer thepayment service of receiving instant credit transfers, since the sending of instant credit
transfers tends to be the more costly and complex of the two services to implement andtherefore necessitates more time for its implementation. The service ensuring verificationis relevant for PSPs offering the payment service of sending credit transfers.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

17

EN

The obligation to offer the service ensuring verification should therefore apply from thesame time as the obligation to offer the payment service of sending instant credit transfers.
The obligations related to charges and harmonised procedure to ensure compliance withobligations stemming from targeted financial restrictive measures should apply as soon as
PSPs are obliged to offer the payment service of receiving instant credit transfers. To allow
PSPs located in Member States whose currency is not the euro to efficiently allocate theresources needed for the implementation of instant credit transfers in euro, the obligations
laid down in this amending Regulation should apply to such PSPs as of later dates than toPSPs located in Member States whose currency is the euro. The introduction of the various
obligations should be gradual as in the case of PSPs located in the euro area. If the euro is
introduced as the currency of a Member State whose currency is not the euro before thoselater dates, the PSPs in that Member State should comply with this amending Regulation
within one year of joining the euro area and not later than the respective dates specified forPSPs in Member States whose currency is not the euro. However, such PSPs should be
able to comply with this amending Regulation earlier than the respective dates specified
for PSPs in Member States whose currency is the euro.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

18

EN

(29)

The Commission should submit a report to the European Parliament and to the Council
evaluating the development of charges for payment accounts as well as for national andcross-border credit transfers and instant credit transfers in euro and in other currencies
since the date of the adoption of the Commission’s legislative proposal for this amending
Regulation, in other words 26 October 2022, in order to monitor any effects of thisamending Regulation on the pricing of accounts, non-instant credit transfers and instantcredit transfers. The Commission should also evaluate the scope and effectiveness of theobligation of a PSP to periodically verify whether its PSUs are persons or entities subject
to targeted financial restrictive measures in preventing unnecessary hindering of sending
and receiving instant credit transfers. The Commission should also submit to the European
Parliament and to the Council a report assessing remaining obstacles to effecting instantcredit transfers in various circumstances, including payments at the POI. That report
should assess the level of standardisation of the technologies which are relevant to the useof instant credit transfers, such as QR codes, near-field communication (NFC) andBluetooth.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

19

EN

(30)

Under Regulation (EU) 2021/1230 of the European Parliament and of the Council9,
charges applied by a PSP located in a Member State whose currency is not the euro inrespect of cross-border credit transfers in euro are to be the same as charges applied by that
PSP in respect of national credit transfers in the national currency of that Member State. In
situations where such a PSP applies higher charges for national instant credit transfers in
the national currency than for national non-instant credit transfers in the national currency,
and therefore also higher charges than for cross-border non-instant credit transfers in euro,
the level of charges that such a PSP would be required to apply under Regulation(EU) 2021/1230 in respect of cross-border instant credit transfers in euro would be higher
than charges for cross-border non-instant credit transfers in euro. In such situations, toavoid conflicting requirements and taking into account the key objective of steering PSUs
towards instant credit transfers in euro, it is appropriate to require that charges applied topayers and payees for cross-border instant credit transfers in euro do not exceed thecharges applied for cross-border non-instant credit transfers in euro.

9Regulation (EU) 2021/1230 of the European Parliament and of the Council of 14 July 2021
on cross-border payments in the Union (OJ L 274, 30.7.2021, p. 20).

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

20

EN

(31)

Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and(EU) 2015/2366 should therefore be amended accordingly.

(32)

Any processing of personal data in the context of providing credit transfers, or the service
ensuring verification, as well as verifying whether PSUs are persons or entities subject totargeted financial restrictive measures, should be in line with Regulation (EU) 2016/679.
Processing of the names and the payment account identifiers of natural persons is
proportionate and necessary to prevent fraudulent transactions, detect errors, and ensurecompliance with targeted financial restrictive measures.

(33)

Since the objectives of this Regulation, namely to provide the necessary uniform rules forcross-border instant credit transfers in euro at Union level and to increase the overall
uptake of instant credit transfers in euro, cannot be sufficiently achieved by theMember States because they cannot impose obligations on PSPs located in otherMember States, but can rather, by reason of scale and effects of the action, be better
achieved at Union level, the Union may adopt measures, in accordance with the principleof subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance withthe principle of proportionality as set out in that Article, this Regulation does not go
beyond what is necessary in order to achieve those objectives.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

21

EN

(34)

The European Data Protection Supervisor was consulted in accordance with Article 42(1)of Regulation (EU) 2018/1725 of the European Parliament and of the Council10 anddelivered an opinion on 19 December 202211,

HAVE ADOPTED THIS REGULATION:

10

11

Regulation (EU) 2018/1725 of the European Parliament and of the Council of
23 October 2018 on the protection of natural persons with regard to the processing of
personal data by the Union institutions, bodies, offices and agencies and on the freemovement of such data, and repealing Regulation (EC) No 45/2001 andDecision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).
OJ C 60, 17.2.2023, p. 12.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

22

EN

Article 1
Amendments to Regulation (EU) No 260/2012
Regulation (EU) No 260/2012 is amended as follows:(1)

Article 2 is amended as follows:(a)the following points are inserted:‘(1a) “instant credit transfer” means a credit transfer which is executed immediately,
24 hours a day and on any calendar day;(1b) “payment initiation channel” means any method, device or procedure throughwhich payers can place payment orders with their PSP for a credit transfer,including online banking, a mobile banking application, an automated teller
machine, or in any other way on the premises of the PSP;(1c) “payment initiation service provider” means a payment initiation service
provider as defined in Article 4, point (18), of Directive (EU) 2015/2366 of theEuropean Parliament and of the Council*;(1d) “name of the payee” means, in respect of a natural person, the name andsurname and, in respect of a legal person, the commercial or legal name;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

23

EN

(1e) “targeted financial restrictive measure” means an asset freeze imposed on a
person, body or entity or a prohibition on making funds or economic resources
available to a person, body or entity, or for its benefit, either directly or
indirectly, pursuant to restrictive measures adopted in accordance with
Article 215 TFEU;(1f) “Legal Entity Identifier” or “LEI” means a unique alphanumeric reference code
based on the ISO 17442 standard assigned to a legal entity;_________________*(b)

Directive (EU) 2015/2366 of the European Parliament and of the Council of
25 November 2015 on payment services in the internal market, amending
Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU)No 1093/2010, and repealing Directive 2007/64/EC(OJ L 337, 23.12.2015, p. 35).’;point (5) is replaced by the following:‘(5) “payment account” means a payment account as defined in
Article 4, point (12), of Directive (EU) 2015/2366;’;(c)point (22) is replaced by the following:‘(22) “retail payment system” means a payment system the main purpose of which isto process, clear or settle credit transfers or direct debits which are primarily ofsmall amount, and that is not a large-value payment system;’;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

24

EN

(2)

the following articles are inserted:‘Article 5a
Instant credit transfer transactions
1.

PSPs that offer to their PSUs a payment service of sending and receiving credit
transfers shall offer to all of their PSUs a payment service of sending and receiving
instant credit transfers.
PSPs as referred to in the first subparagraph shall ensure that all payment accounts
that are reachable for credit transfers are also reachable for instant credit transfers
24 hours a day and on any calendar day.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

25

EN

2.

By way of derogation from paragraph 1, and subject to having obtained the priorpermission of its competent authorities based on those authorities’ assessment of its
access to liquidity in euro, a PSP located in a Member State whose currency is not
the euro shall not be obliged to offer PSUs the payment service of sending instantcredit transfers in euro beyond a limit per transaction, from payment accounts
denominated in the national currency of that Member State, during the time whenthat PSP neither sends nor receives non-instant credit transfer transactions in eurowith respect to such payment accounts. That limit shall be set by the competentauthorities and shall not be lower than EUR 25 000. Competent authorities may grantprior permission at the request of the PSP for a period of one year. At the request of
the PSP, competent authorities may extend that prior permission by further periods of
one year following a reassessment by the competent authorities of the PSP’s accessto liquidity in euro. Competent authorities shall inform the Commission on an annual
basis of prior permissions and extensions granted in accordance with this paragraph.
The ECB and any national central bank, when not acting in its capacity as monetary
authority or other public authority, may limit its offer of a payment service ofsending instant credit transfers to the period of time during which it offers a payment
service of sending and receiving non-instant credit transfers.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

26

EN

3.

Notwithstanding Article 78(1), second subparagraph, of Directive (EU) 2015/2366,
the time of receipt of a payment order for an instant credit transfer shall be themoment it has been received by the payer’s PSP, regardless of the hour or calendarday.
Notwithstanding Article 78(2) of Directive (EU) 2015/2366, if the payer and thepayer’s PSP agree that execution of the payment order for an instant credit transfer is
to take place at a specific time on a specific day or at the moment when the payer has
put funds at the disposal of the PSP, the time of receipt of the payment order for an
instant credit transfer shall be deemed to be the agreed time, regardless of the hour orcalendar day.
By way of derogation from the first and second subparagraphs of this paragraph, thetime of receipt of the payment order for an instant credit transfer shall be:(a)

for a non-electronic payment order for an instant credit transfer, the moment
when the payer’s PSP has introduced the payment order information into its
internal system, which shall occur as soon as possible after the non-electronic
payment order for an instant credit transfer has been placed by the payer withthe payer’s PSP;PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

27

EN

(b)

for an individual payment order for an instant credit transfer belonging to a
package as referred to in paragraph 7 of this Article, where the conversion ofthat package into individual payment transactions is carried out by the payer’s
PSP, the moment when the ensuing payment transaction has been unpacked by
the payer’s PSP; the payer’s PSP shall start the conversion of the package
immediately after it has been placed by the payer with the payer’s PSP andcomplete that conversion as soon as possible;(c)for a payment order for an instant credit transfer from payment accounts thatare not denominated in euro, the moment when the amount of the paymenttransaction has been converted into euro; such currency conversion shall takeplace immediately after the payment order for an instant credit transfer has
been placed by the payer with the payer’s PSP.

4.

When carrying out instant credit transfers, PSPs shall, in addition to the requirements
set out in Article 5, comply with the following requirements:(a)PSPs shall ensure that payers are able to place a payment order for an instantcredit transfer through all of the same payment initiation channels as the ones
through which those payers are able to place a payment order for other credit
transfers;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

28

EN

(b)

notwithstanding Article 83 of Directive (EU) 2015/2366, immediately after thetime of receipt of a payment order for an instant credit transfer, the payer’s PSP
shall verify whether all of the necessary conditions for processing the paymenttransaction are met and whether the necessary funds are available, reserve or
debit the amount of the payment transaction from the account of the payer, andimmediately send the payment transaction to the payee’s PSP;(c)notwithstanding Article 83 and Article 87(2) of Directive (EU) 2015/2366, thepayee’s PSP shall, within 10 seconds of the time of receipt of the payment
order for an instant credit transfer by the payer’s PSP, make the amount of thepayment transaction available on the payee’s payment account in the currency
in which the payee’s account is denominated and confirm the completion of thepayment transaction to the payer’s PSP;(d)notwithstanding Article 87(1) of Directive (EU) 2015/2366, the payee’s PSP
shall ensure that the credit value date for the payee’s payment account is thesame date as the date on which the payee’s payment account is credited by the
payee’s PSP with the amount of the payment transaction; andPE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

29

EN

(e)

immediately upon receiving the confirmation of completion referred to inpoint (c), or where no such confirmation of completion is received by thepayer’s PSP within 10 seconds of the time of receipt of the payment order for
an instant credit transfer, the payer’s PSP shall, free of charge, inform thepayer, as well as, where applicable, the payment initiation service provider,whether the amount of the payment transaction has been made available on the
payee’s payment account.

5.

Notwithstanding Article 89 of Directive (EU) 2015/2366, where the payer’s PSP has
not received a message from the payee’s PSP confirming that the funds were madeavailable on the payee’s payment account within 10 seconds of the time of receipt,
the payer’s PSP shall immediately restore the payment account of the payer to thestate in which it would have been had the transaction not taken place.

6.

Upon the request of the PSU, a PSP shall offer a PSU the possibility of setting a limit
fixing a maximum amount that can be sent by means of instant credit transfer. That
limit may be either on a per day or per transaction basis, at the sole discretion of the
PSU. PSPs shall ensure that PSUs are able to modify that maximum amount at any
time prior to the placing of a payment order for an instant credit transfer. Where a
PSU’s payment order for an instant credit transfer exceeds, or leads to exceeding of,
the maximum amount, the payer’s PSP shall not execute the payment order for the
instant credit transfer, shall notify the PSU thereof and shall inform the PSU as to
how to modify the maximum amount.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

30

EN

7.

When offering the payment service of sending and receiving instant credit transfers,
PSPs shall offer their PSUs the possibility of submitting multiple payment orders as a
package if PSPs offer such possibility to their PSUs for other credit transfers.
PSPs shall not impose limits on the number of payment orders that can be submitted
in a package of instant credit transfers which are lower than the limits they impose inrespect of packages of other credit transfers.

8.

PSPs as referred to in paragraph 1 that are located in a Member State whose currency
is the euro shall offer PSUs the payment service of receiving instant credit transfersin euro as laid down in this Article by … [9 months from the date of entry into forceof this amending Regulation], and the payment service of sending instant credit
transfers in euro as laid down in this Article by … [18 months from the date of entry
into force of this amending Regulation].
PSPs as referred to in paragraph 1 that are located in a Member State whose currency
is not the euro shall offer PSUs the payment service of receiving instant credit
transfers in euro as laid down in this Article by … [33 months from the date of entry
into force of this amending Regulation], and the payment service of sending instantcredit transfers in euro as laid down in this Article by … [39 months from the date ofentry into force of this amending Regulation].

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

31

EN

By way of derogation from the second subparagraph of this paragraph, until …
[50 months from the date of entry into force of this amending Regulation] PSPs as
referred to in paragraph 1 of this Article that are located in a Member State whose
currency is not the euro shall not be obliged to offer PSUs the payment service ofsending instant credit transfers in euro from payment accounts denominated in thenational currency of that Member State, during the time when those PSPs neither
send nor receive non-instant credit transfer transactions in euro with respect to suchaccounts.
Notwithstanding the first subparagraph of this paragraph, PSPs that are electronicmoney institutions as defined in Article 2, point (1), of Directive 2009/110/EC orpayment institutions as defined in Article 4, point (4), of Directive (EU) 2015/2366
and that are located in a Member State whose currency is the euro shall offer PSUs
the payment service of sending and receiving instant credit transfers in euro as laid
down in this Article by ... [36 months from the date of entry into force of thisamending Regulation].

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

32

EN

Notwithstanding the second subparagraph of this paragraph, PSPs that are electronicmoney institutions as defined in Article 2, point (1), of Directive 2009/110/EC orpayment institutions as defined in Article 4, point (4), of Directive (EU) 2015/2366
and that are located in a Member State whose currency is not the euro shall offer
PSUs the payment service of receiving instant credit transfers in euro as laid down inthis Article by ... [36 months from the date of entry into force of this amending
Regulation] and the payment service of sending instant credit transfers in euro as laid
down in this Article by ... [39 months from the date of entry into force of thisamending Regulation].
Article 5b
Charges in respect of credit transfers and verification of the payee
1.

Any charges levied by a PSP on payers and payees in respect of sending andreceiving instant credit transfers shall not be higher than the charges levied by that
PSP in respect of sending and receiving other credit transfers of corresponding type.

2.

The services referred to in Article 5c shall be provided to all PSUs free of charge.

3.

PSPs located in a Member State whose currency is the euro shall comply with this
Article by … [9 months from the date of entry into force of this amending
Regulation].
PSPs located in a Member State whose currency is not the euro shall comply withthis Article by … [33 months from the date of entry into force of this amending
Regulation].

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

33

EN

Article 5c
Verification of the payee in the case of credit transfers
1.

A payer’s PSP shall offer the payer a service ensuring verification of the payee towhom the payer intends to send a credit transfer (service ensuring verification). The
payer’s PSP shall perform the service ensuring verification immediately after thepayer provides relevant information about the payee and before the payer is offered
the possibility of authorising that credit transfer. The payer’s PSP shall offer theservice ensuring verification regardless of the payment initiation channel used by thepayer to place a payment order for the credit transfer. The service ensuring
verification shall be provided in accordance with the following:(a)where the payment account identifier specified in point (1)(a) of the Annex andthe name of the payee have been inserted in the payment order for the credit
transfer by the payer, the payer’s PSP shall provide a service for matching thepayment account identifier specified in point (1)(a) of the Annex with the nameof the payee. Upon the request of the payer’s PSP, the payee’s PSP shall verify
whether the payment account identifier specified in point (1)(a) of the Annex
and the name of the payee provided by the payer match. Where they do notmatch, the payer’s PSP shall, based on information provided by the payee’s
PSP, notify the payer thereof and inform the payer that authorising the credit
transfer might lead to transferring the funds to a payment account not held by
the payee indicated by the payer. Where the name of the payee provided by thepayer and the payment account identifier specified in point (1)(a) of the Annex
almost match, the payer’s PSP shall indicate to the payer the name of the payee
associated with the payment account identifier specified in point (1)(a) of theAnnex provided by the payer;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

34

EN

(b)

where the payee is a legal person and the payer’s PSP offers a payment
initiation channel which allows the payer to place a payment order by
providing the payment account identifier specified in point (1)(a) of the Annex
to this Regulation together with data elements other than the name of the payeethat unambiguously identify the payee, such as a fiscal number, a European
unique identifier as referred to in Article 16(1), second subparagraph, ofDirective (EU) 2017/1132 of the European Parliament and of the Council* or
an LEI, and where those same data elements are available in the internal
system of the payee’s PSP, that PSP, upon the request of the payer’s PSP, shallverify whether the payment account identifier specified in point (1)(a) of theAnnex to this Regulation and the data element provided by the payer match.
Where the payment account identifier specified in point (1)(a) of the Annex tothis Regulation and the data element provided by the payer do not match, thepayer’s PSP shall, based on information provided by the payee’s PSP, notify
the payer thereof;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

35

EN

(c)

where a payment account identified through a payment account identifier
specified in point (1)(a) of the Annex provided by the payer is held by a PSP
on behalf of multiple payees, additional information allowing the payee to beunambiguously identified may be provided by the payer to the payer’s PSP.
The PSP maintaining that payment account on behalf of multiple payees or,where appropriate, the PSP holding that payment account, shall, upon therequest of the payer’s PSP, confirm whether the payee indicated by the payer isamong the multiple payees on whose behalf the payment account is maintainedor held. The payer’s PSP shall notify the payer if the payee indicated by thepayer is not among the multiple payees on whose behalf the payment accountis maintained or held;(d)in cases other than those described in points (a), (b) and (c) of this paragraph,and, in particular, where a PSP provides a payment initiation channel which
does not require the payer to insert both the payment account identifier
specified in point (1)(a) of the Annex and the name of the payee, the PSP shallensure that the payee to whom the payer intends to send a credit transfer iscorrectly identified. For that purpose, the PSP shall inform the payer in a waythat allows the payer to validate the payee before authorising the credit
transfer.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

36

EN

2.

Where the payment account identifier specified in point (1)(a) of the Annex or thename of the payee is provided by a payment initiation service provider, rather thanby the payer, that payment initiation service provider shall ensure that the
information concerning the payee is correct.

3.

PSPs, for the purposes of paragraph 1, point (d), and payment initiation service
providers, for the purposes of paragraph 2, shall maintain robust internal procedures
to ensure that the information concerning payees is correct.

4.

In the case of paper-based payment orders, the payer’s PSP shall perform the service
ensuring verification at the time of receipt of the payment order, unless the payer is
not present at the time of receipt.

5.

PSPs shall ensure that the performance of the service ensuring verification and of theservice described in paragraph 2 does not prevent payers from authorising the credit
transfer concerned.

6.

PSPs shall provide PSUs that are not consumers with the means to opt out fromreceiving the service ensuring verification when submitting multiple payment orders
as a package.
PSPs shall ensure that PSUs that opted out from receiving the service ensuring
verification have the right to opt in at any time to receive that service.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

37

EN

7.

Whenever the payer's PSP notifies the payer in accordance with paragraph 1, point(a), (b) or (c), that PSP shall at the same time inform the payer that authorising thecredit transfer might lead to transferring the funds to a payment account not held by
the payee indicated by the payer. A PSP shall provide that information to the PSU
that is not a consumer when that PSU opts out from receiving the service ensuring
verification when submitting multiple payment orders as a package. PSPs shallinform their PSUs of the implications for PSP liability and PSU refund rights
resulting from a decision by PSUs to ignore a notification as referred to inparagraph 1, points (a), (b) and (c).

8.

A PSP shall not be held liable for the execution of a credit transfer to an unintended
payee on the basis of an incorrect unique identifier, as laid down in Article 88 of
Directive (EU) 2015/2366, provided that it has fulfilled the requirements of this
Article.
Where the payer’s PSP fails to comply with paragraph 1 of this Article, or where thepayment initiation service provider fails to comply with paragraph 2 of this Article,
and where that failure results in a defectively executed payment transaction, thepayer’s PSP shall without delay refund the payer the amount transferred and, whereapplicable, restore the debited payment account to the state in which it would havebeen had the transaction not taken place.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

38

EN

Where the failure to comply occurs because the payee’s PSP, or the payment
initiation service provider, failed to comply with its obligations under this Article,
the payee’s PSP or, where relevant, the payment initiation service provider, shallcompensate the payer’s PSP for the financial damage caused to the payer’s PSP bythat failure.
Any further financial loss caused to the payer may be compensated in accordancewith the law applicable to the contract concluded between the payer and the relevantPSP.
9.

PSPs located in a Member State whose currency is the euro shall comply with this
Article by … [18 months from the date of entry into force of this amending
Regulation].
PSPs located in a Member State whose currency is not the euro shall comply withthis Article by … [39 months from the date of entry into force of this amending
Regulation].

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

39

EN

Article 5d
Screening of PSUs by PSPs that offer instant credit transfers to verify whether a PSU is aperson or entity subject to targeted financial restrictive measures
1.

PSPs offering instant credit transfers shall verify whether any of their PSUs are
persons or entities subject to targeted financial restrictive measures.
PSPs shall carry out such verifications immediately after the entry into force of any
new targeted financial restrictive measures, and immediately after the entry into
force of any amendments to such targeted financial restrictive measures, and at least
once every calendar day.

2.

During the execution of an instant credit transfer, the payer’s PSP and the payee’s
PSP involved in the execution of that instant credit transfer shall not verify whether
the payer or the payee whose payment accounts are used for the execution of that
instant credit transfer are persons or entities subject to targeted financial restrictive
measures in addition to carrying out verifications under paragraph 1 of this Article.
The first subparagraph of this paragraph is without prejudice to actions taken by
PSPs in order to comply with restrictive measures, other than targeted financial
restrictive measures, adopted in accordance with Article 215 TFEU, with restrictive
measures that are not adopted in accordance with Article 215 TFEU, or with Union
law on the prevention of money laundering and terrorist financing.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

40

EN

3.

PSPs shall comply with this Article by … [9 months from the date of entry into forceof this amending Regulation].

______________*(3)

Directive (EU) 2017/1132 of the European Parliament and of the Council of
14 June 2017 relating to certain aspects of company law(OJ L 169, 30.6.2017, p. 46).’;in Article 11, the following paragraphs are inserted:‘1a. By way of derogation from paragraph 1 of this Article, Member States shall, by …
[12 months from the date of entry into force of this amending Regulation], lay down
rules on the penalties applicable to infringements of Articles 5a to 5d and shall takeall measures necessary to ensure that they are implemented. Such penalties shall beeffective, proportionate and dissuasive. Member States shall, by … [12 months fromthe date of entry into force of this amending Regulation], notify the Commission of
those rules and measures and shall notify it, without delay, of any subsequent
amendment affecting them.
1b.

With respect to penalties applicable to infringements of Article 5d, Member Statesshall ensure that such penalties include:(a)in the case of a legal person, maximum administrative fines of at least 10 % of
the total annual net turnover of the legal person in the preceding business year;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

41

EN

(b)

in the case of a natural person, maximum administrative fines of at least EUR
5 000 000, or the equivalent amount in the national currency in theMember States whose currency is not the euro on … [date of entry into force of
this amending Regulation].

For the purposes of point (a) of this paragraph, where the legal person is a subsidiaryof a parent undertaking, as defined in Article 2, point (9), of Directive 2013/34/EU of
the European Parliament and of the Council*, or of any undertaking which effectively
exercises a dominant influence over that legal person, the relevant turnover shall be
the turnover resulting from the consolidated accounts of the ultimate parent
undertaking in the preceding business year.
1c.

The penalties referred to in paragraph 1a of this Article shall not be applied in respectof infringements of the reachability requirement in Article 5a(1), second
subparagraph, where the payment accounts maintained by PSPs are not reachable for
instant credit transfers due to planned maintenance where periods of non-availability
are both foreseeable and short or to a planned downtime of all instant credit transfers
under the relevant payment scheme, provided that PSUs have been informed inadvance of those periods of planned maintenance or planned downtime.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

42

EN

1d.

By way of derogation from paragraph 1b, where the legal system of the Member
State does not provide for administrative penalties, this Article may be applied insuch a manner that the penalty is initiated by the competent authority and imposed by
judicial authorities, while ensuring that that penalty is effective, proportionate anddissuasive, and has an equivalent effect to the administrative penalties imposed by
the competent authorities of the Member States the legal system of which does
provide for administrative penalties. In any event, the penalties imposed shall beeffective, proportionate and dissuasive. The Member States the legal system of which
does not provide for administrative penalties shall notify the Commission of theirpenalties by … [12 months from the date of entry into force of this amending
Regulation] and shall notify it without delay of any subsequent amendment affecting
them.

__________________*

Directive 2013/34/EU of the European Parliament and of the Council of
26 June 2013 on the annual financial statements, consolidated financial statements
and related reports of certain types of undertakings, amending Directive 2006/43/EC
of the European Parliament and of the Council and repealing Council
Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).’;PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

43

EN

(4)

Article 15 is replaced by the following:
Article 15
Review1.

By 1 February 2017, the Commission shall present to the European Parliament, theCouncil, the European Economic and Social Committee, ECB and EBA a report on
the application of this Regulation accompanied, if appropriate, by a proposal.

2.

By … [54 months from the date of entry into force of this amending Regulation] theCommission shall present a report to the European Parliament and to the Council
accompanied, if appropriate, by a legislative proposal. The report shall contain an
evaluation of:(a)the development of charges for payment accounts as well as for national andcross-border credit transfers and instant credit transfers in euro and in thenational currency of the Member States whose currency is not the euro since
26 October 2022, including the impact of Article 5b(1) on those charges; and(b)the scope of Article 5d and its effectiveness in preventing unnecessary
hindering of instant credit transfers.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

44

EN

3.

PSPs shall report to their competent authorities on:(a)the level of charges for credit transfers, instant credit transfers and payment
accounts;(b)

the share of rejections, separately for national and cross-border paymenttransactions, due to the application of targeted financial restrictive measures.

PSPs shall submit such reports every 12 months. The first report shall be submitted
on … [12 months from the date of entry into force of this amending Regulation] andshall include information on the level of charges and on rejections during the period
starting on 26 October 2022 until the end of preceding calendar year.
4.

By … [18 months from the date of entry into force of this amending Regulation], andannually thereafter, competent authorities shall provide the Commission and EBA
with the information reported to them by PSPs under paragraph 3, and theinformation on the volume and value of instant credit transfers in euro which havebeen sent, both national and cross-border, by PSPs established in their Member Statein the course of the preceding calendar year.

5.

The EBA shall develop draft implementing technical standards to specify uniform
reporting templates, instructions and methodology on how to use those reporting
templates for the purposes of reporting as referred to in paragraph 3.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

45

EN

The EBA shall submit the draft implementing technical standards referred to in thefirst subparagraph of this paragraph to the Commission by … [2 months from thedate of entry into force of this amending Regulation].
Power is conferred on the Commission to adopt the implementing technical standards
referred to in the first subparagraph of this paragraph in accordance with Article 15
of Regulation (EU) No 1093/2010.
6.

The Commission shall, by … [36 months from the date of entry into force of thisamending Regulation], submit to the European Parliament and to the Council a reporton remaining obstacles to the availability and use of instant credit transfers. That
report shall assess the level of standardisation of the technologies which are relevantto the use of instant credit transfers. The report may be accompanied, if appropriate,by a legislative proposal.’;(5)

in Article 16, the following paragraph is added:‘9.

If the euro is introduced as the currency of a Member State before … [36 months
from the date of entry into force of this amending Regulation], the PSPs in that
Member State shall comply with Articles 5a, 5b and 5c within one year of the date on
which the euro has been introduced as the currency of that Member State and notlater than the respective dates specified in those Articles for PSPs in Member States
whose currency is not the euro. However, such PSPs shall not be required to comply
with Articles 5a, 5b and 5c earlier than the respective dates specified in those
Articles for PSPs in the Member States whose currency is the euro.’.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

46

EN

Article 2
Amendments to Regulation (EU) 2021/1230
Regulation (EU) 2021/1230 is amended as follows:(1)

in Article 3, the following paragraph is added:‘5.

Paragraph 1 of this Article shall not apply where Article 5b(1) of Regulation(EU) No 260/2012 of the European Parliament and of the Council* would require a
payment service provider located in a Member State that does not have the euro as its
currency, with respect to an instant credit transfer, to levy a charge which would belower than the charge which would be levied, with respect to the same instant credit
transfer, if paragraph 1 of this Article were to be applied.
For the purposes of the first subparagraph of this paragraph, the term “instant credit
transfer” means an instant credit transfer as defined in Article 2, point (1a), ofRegulation (EU) No 260/2012, that is in euro and cross-border.

__________________*

Regulation (EU) No 260/2012 of the European Parliament and of the Council of
14 March 2012 establishing technical and business requirements for credit transfersand direct debits in euro and amending Regulation (EC) No 924/2009(OJ L 94, 30.3.2012, p. 22).’;PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

47

EN

(2)

in Article 6, paragraph 2 is replaced by the following:‘2.

The payment service provider may levy charges additional to those levied inaccordance with Article 3(1) of this Regulation on the payment service user wherethat user instructs the payment service provider to execute a cross-border payment
without communicating the IBAN and, where appropriate and in accordance with
Regulation (EU) No 260/2012, the related BIC for the payment account in the otherMember State. Those charges shall be appropriate and in line with the costs. They
shall be agreed between the payment service provider and the payment service user.
The payment service provider shall inform the payment service user of the amount of
the additional charges in good time before the payment service user is bound by suchan agreement.’.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

48

EN

Article 3
Amendments to Directive (EU) 2015/2366
Directive (EU) 2015/2366 is amended as follows:(1)

Article 10(1) is replaced by the following:‘1.

Member States or competent authorities shall require payment institutions which
provide payment services as referred to in points (1) to (6) of Annex I to thisDirective and electronic money institutions as defined in Article 2, point (1), of
Directive 2009/110/EC to safeguard all funds which have been received from thepayment service users or through another payment service provider for the executionof payment transactions, in either of the following ways:(a)funds shall not be commingled at any time with the funds of any natural or
legal person other than payment service users on whose behalf the funds areheld and, where they are still held by the payment institution or electronicmoney institution and not yet delivered to the payee or transferred to anotherpayment service provider by the end of the business day following the day
when the funds have been received, they shall be deposited in a separate
account in a credit institution or in a central bank at the discretion of that
central bank, or invested in secure, liquid low-risk assets as defined by thecompetent authorities of the home Member State; and they shall be insulated inaccordance with national law in the interest of the payment service users
against the claims of other creditors of the payment institution or electronicmoney institution, in particular in the event of insolvency;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

49

EN

(b)

funds shall be covered by an insurance policy or some other comparable
guarantee from an insurance company or a credit institution, which does notbelong to the same group as the payment institution or electronic money
institution itself, for an amount equivalent to that which would have been
segregated in the absence of the insurance policy or other comparable
guarantee, payable in the event that the payment institution or electronic money
institution is unable to meet its financial obligations.’;(2)

Article 35 is amended as follows:(a)paragraph 2 is replaced by the following:‘2.

Paragraph 1 shall not apply to payment systems composed exclusively of
payment service providers belonging to a group.’;(b)

the following paragraph is added:‘3.

Member States shall ensure that where a participant in a payment systemdesignated under Directive 98/26/EC of the European Parliament and of theCouncil* allows an authorised or registered payment service provider that is nota participant in the system to pass transfer orders through the system thatparticipant shall, when requested, give the same opportunity in an objective,
proportionate and non-discriminatory manner to other authorised or registered
payment service providers in line with paragraph 1 of this Article.
The participant shall provide the requesting payment service provider with full
reasons for any rejection.

_____________*

Directive 98/26/EC of the European Parliament and of the Council of
19 May 1998 on settlement finality in payment and securities settlement
systems (OJ L 166, 11.6.1998, p. 45).’;PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

50

EN

(3)

the following article is inserted:‘Article 35a
Conditions for requesting participation in designated payment systems
1.

By way of safeguard for the stability and integrity of payment systems, payment
institutions and electronic money institutions requesting participation andparticipating in systems designated under Directive 98/26/EC shall have in place thefollowing:(a)a description of the measures taken for safeguarding payment service users’
funds;(b)a description of the governance arrangements and internal control mechanisms
for the payment services or electronic money services it intends to provide,
including administrative, risk management and accounting procedures, of thepayment institution or electronic money institution and a description of thearrangements for the use of information and communication technology
services of the payment institution or electronic money institution, related to
Articles 6 and 7 of Regulation (EU) 2022/2554 of the European Parliament andof the Council*; and(c)a winding-up plan in case of failure.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

51

EN

For the purposes of the first subparagraph, point (a), of this paragraph:(a)where the payment institution or electronic money institution safeguards
payment service users’ funds by depositing funds in a separate account in a
credit institution or by means of an investment in secure, liquid, low-risk assets
as defined by the competent authorities of the home Member State, thedescription of the measures taken for such safeguarding shall contain, as
applicable:(i)a description of the investment policy to ensure that the assets that arechosen are liquid, secure and low-risk;(ii)

the number of persons that have access to the safeguarding account andtheir functions;(iii) a description of the administration and reconciliation process to ensurethat payment service users’ funds are insulated in the interest of payment
service users against the claims of other creditors of the payment
institution or electronic money institution, in particular in the event of
insolvency;(iv) a copy of the draft contract with the credit institution;(v)

an explicit declaration by the payment institution or electronic money
institution of compliance with Article 10 of this Directive;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

52

EN

(b)

where the payment institution or electronic money institution safeguards
payment service users’ funds through an insurance policy or comparable
guarantee from an insurance company or a credit institution, the description of
the measures taken for such safeguarding shall contain the following:(i)a confirmation that the insurance policy or comparable guarantee from aninsurance company or a credit institution is from an entity that is not partof the same group of firms as the payment institution or electronic money
institution;(ii)

details of the reconciliation process in place to ensure that the insurance
policy or comparable guarantee is sufficient to meet the safeguarding
obligations of the payment institution or electronic money institution at
all times;(iii) the duration and the terms of renewal of the coverage;(iv) a copy of the insurance agreement or comparable guarantee, or drafts
thereof.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

53

EN

For the purposes of the first subparagraph, point (b), the description shalldemonstrate that the governance arrangements, internal control mechanisms andarrangements for the use of information and communication technology as referred
to in that point are proportionate, appropriate, sound and adequate. In addition,
governance arrangements and internal control mechanisms shall include:(a)a mapping of the risks identified by the payment institution or electronicmoney institution, including the type of risks and the procedures the payment
institution or electronic money institution has in place or will put in place toassess and prevent such risks;(b)the different procedures to carry out periodical and permanent controls,
including the frequency and the human resources allocated;(c)the accounting procedures by which the payment institution or electronicmoney institution records and reports its financial information;(d)the identity of the person or persons responsible for the internal control
functions, including for periodic, permanent and compliance control, as well as
an up-to-date curriculum vitae of that person or those persons;(e)the identity of any auditor that is not a statutory auditor as defined in Article 2,
point 2, of Directive 2006/43/EC;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

54

EN

(f)

the composition of the management body and, if applicable, of any otheroversight body or committee;(g)a description of the way outsourced functions are monitored and controlled so
as to avoid impairment of the quality of the internal controls of the payment
institution or electronic money institution;(h)a description of the way any agents and branches are monitored and controlled
within the framework of the internal controls of the payment institution orelectronic money institution;(i)where the payment institution or electronic money institution is the subsidiaryof a regulated entity in another Member State, a description of the group
governance.

For the purposes of the first subparagraph, point (c), the winding-up plan shall be
adapted to the envisaged size and business model of the payment institution orelectronic money institution and shall include a description of the mitigation
measures to be adopted by the payment institution or electronic money institution in
the event of the termination of its payment services, which would ensure theexecution of pending payment transactions and the termination of existing contracts.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

55

EN

2.

Member States shall define the procedure by which compliance with paragraph 1 isassessed. That procedure may take the form of self-assessment, of a requirement foran explicit decision by the competent authority, or of any other procedure that aims
to ensure that the payment institutions and electronic money institutions concerned
comply with paragraph 1.

__________________*

Regulation (EU) 2022/2554 of the European Parliament and of the Council of
14 December 2022 on digital operational resilience for the financial sector andamending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014,(EU) No 909/2014 and (EU) 2016/1011 (OJ L 333, 27.12.2022, p. 1).’.
Article 4
Amendments to Directive 98/26/EC

In Directive 98/26/EC, Article 2 is amended as follows:(1)

point (b) is replaced by the following:‘(b) “institution” shall mean:–a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No
575/2013 of the European Parliament and of the Council*, including the entities
listed in Article 2(5) of Directive 2013/36/EU;

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

56

EN

–

an investment firm as defined in Article 4(1), point (1), of Directive
2014/65/EU of the European Parliament and of the Council**, excluding theinstitutions set out in Article 2(1) thereof;–

public authorities and publicly guaranteed undertakings; or–any undertaking whose head office is outside the Union and whose functions
correspond to those of the Union credit institutions or investment firms definedin the first and second indent,

which participates in a system, and which is responsible for discharging the financial
obligations arising from transfer orders within that system;–

a payment institution as defined in Article 4, point (4), of Directive (EU)2015/2366 of the European Parliament and of the Council***, with the
exception of a natural or legal person benefitting from an exemption pursuant
to Article 32 or 33 of that Directive; or–an electronic money institution as defined in Article 2, point (1), of Directive
2009/110/EC of the European Parliament and of the Council****, with the
exception of a legal person benefitting from a waiver under Article 9 of that
Directive,

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

57

ENwhich participates in a system whose business consists of the execution of transfer
orders as defined in point (i), first indent, and which is responsible for discharging
the financial obligations arising from such transfer orders within that system.
If a system is supervised in accordance with national legislation and only executes
transfer orders as defined in point (i), second indent, as well as payments resulting
from such orders, a Member State may decide that undertakings which participate insuch a system and which have responsibility for discharging the financial obligations
arising from transfer orders within this system, can be considered institutions,provided that at least three participants of this system are covered by the categories
referred to in the first subparagraph of this point and that such a decision is warrantedon grounds of systemic risk;__________________
*

**

***

****

Regulation (EU) No 575/2013 of the European Parliament and of the Councilof 26 June 2013 on prudential requirements for credit institutions andinvestment firms and amending Regulation (EU) No 648/2012(OJ L 176, 27.6.2013, p. 1).
Directive 2014/65/EU of the European Parliament and of the Council of
15 May 2014 on markets in financial instruments and amending Directive
2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
Directive (EU) 2015/2366 of the European Parliament and of the Council of
25 November 2015 on payment services in the internal market, amending
Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation(EU) No 1093/2010, and repealing Directive 2007/64/EC(OJ L 337, 23.12.2015, p. 35).
Directive 2009/110/EC of the European Parliament and of the Council of 16
September 2009 on the taking up, pursuit and prudential supervision of thebusiness of electronic money institutions amending Directives 2005/60/EC and2006/48/EC and repealing Directive 2000/46/EC(OJ L 267, 10.10.2009, p. 7).’;PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

58

EN

(2)

point (f) is replaced by the following:‘(f)“participant” shall mean an institution, a CCP, a settlement agent, a clearing house, asystem operator or a clearing member of a CCP authorised pursuant to Article 17 ofRegulation (EU) No 648/2012.
According to the rules of the system, the same participant may act as a CCP, asettlement agent or a clearing house or carry out part or all of those tasks.
A Member State may, for the purposes of this Directive, consider an indirect
participant to be a participant where that is justified on the grounds of systemic risk,
which shall, however, not limit the responsibility of the participant through which theindirect participant passes transfer orders to the system;’.

Article 5
Transposition of amendments to Directives (EU) 2015/2366 and 98/26/EC
Member States shall adopt, publish and apply, by … [12 months from the date of entry into force of
this amending Regulation], the laws, regulations and administrative provisions necessary to comply
with Articles 3 and 4. They shall immediately communicate the text of those measures to theCommission.
When Member States adopt those measures, they shall contain a reference to this Regulation orshall be accompanied by such reference on the occasion of their official publication. The methodsof making such reference shall be laid down by Member States.

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

59

EN

Article 6
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the
Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at …,

For the European Parliament

For the Council

The President

The President

PE-CONS 76/23

VS/MCF/sl
ECOFIN.1.B.

60

EN