The Montenegrin government has proposed amendments to the Payment Transactions Law that would align the country’s payment system with European Union rules while making payments faster, safer, and more transparent. The most significant change is the introduction of instant credit transfers, requiring banks and other payment service providers to process payments 24/7, including weekends and holidays. Funds must be credited to the recipient’s account within 10 seconds, and if the receiving bank fails to confirm the transfer within that time, the sender’s bank must immediately reverse the transaction.
The proposed law also introduces stronger consumer protection by requiring banks to verify whether the recipient’s name matches the provided IBAN before a payment is confirmed. If the details do not match, customers will receive a warning that the money could be sent to the wrong account. In cases where the name is very similar, the correct account holder’s name will be displayed before the payment is authorised, helping to reduce errors and fraud.
Banks will not be allowed to charge higher fees for instant transfers than for standard credit transfers, and the recipient verification service must be provided free of charge. The Central Bank will also have the authority to require instant transfers to be cheaper than standard transfers if necessary to promote competition. Customers will be able to set their own limits on instant payments, either per transaction or per day, with banks automatically rejecting transfers that exceed those limits.
The legislation also strengthens digital security requirements for banks by introducing stricter rules on managing cyber risks, reporting major security incidents, and ensuring business continuity during cyberattacks or technical disruptions. Additional measures improve transparency in cross-border euro payments, currency conversion, and interoperability between Montenegro’s payment systems and those of EU member states, making cross-border transactions more efficient. If adopted, the law will take effect eight days after its publication in Montenegro’s Official Gazette.
