Veroljub Dugalic, Secretary General of Association of Serbian Banks - SEPA is the future of payment systems

Source: eKapija Thursday, 23.09.2010. 16:05
Comments
Podeli

Veroljub DugalicVeroljub Dugalic

"Direct Debit", the system of direct payment, which accelerates, simplifies and makes the system of charging cheaper on the basis of an agreement between two juristic persons, may be placed at the disposal of companies in Serbia by the end of 2010. The Association of Serbian Banks (UBS) has initiated the process of standardization of the system of payment in our country with the unique infrastructure of payments in the European Union ("Single Euro Payments Area"). SEPA is an European initiative by which a new group of payment instruments, technical standards, business rules and legal regulations are introduced with the aim of forming a very large database of banks and their clients who use the same mechanisms of payment in euros, regardless of where the participants in a transaction are situated, while "Direct Debit" is the first SEPA service that is being implemented in our country.

By introducing SEPA standards, Serbia would be the first in the region to standardize the system of payments with the European Union, leaving even some of its members, namely Romania and Bulgaria, behind. According to Secretary General of Association of Serbian Banks Veroljub Dugalic, that would create an opportunity for our country to become the center of such operations for this part of Europe.

Veroljub Dugalic explains for eKapija what the SEPA rules and "Direct Debit" service are and what their implementation would bring to banks and their clients in Serbia.

eKapija: What does the introduction of SEPA rules and "Direct Debit" service mean for the Republic of Serbia?

- The European Union has developed its own system of payments and all those who would like to come closer to or enter the EU must accept these rules. The same applies to Serbia. That is why we have been thinking about doing something before others make us do that and to get the banking sector ready. Besides, we also apply other standards that are applicable in the EU. This is a big job for Serbia, to get ready for the admission to the EU, as well as to develop this system before some countries members such as Bulgaria and Romania, and to become the regional center (the central clearing house). All congresses of the European Banking Association, of which member is the Association of Serbian Banks, have started and ended with SEPA. We have realized that that is the future when it comes to the system of payments. We have suggested our former Governor that we should join that standardization process. He remained uninterested until certain Dutchman, a representative of the European Central Bank, came and presented that service. Then he gave us a full support.

eKapija: The National Bank of Serbia has certified UBS as the processor for "Direct Debit". What other role does NBS have in the implementation of SEPA and what is expected from NBS, UBS and banks themselves?

- The Association of Serbian Banks is the only association in Europe to get the role of the processor for "Direct Debit" service. In the EU, that role is given only to the biggest banks. The National Bank of Serbia supports this project, which we find very significant. At this moment, the only role of NBS is to provide the support. The interest of banks, especially those whose capital comes from the EU, is big. Banks should sign agreements with companies that will be working on the internal part of the organization of the system of payments. Asseco has gone the furthest in that process because it has developed a software solution for the use of "Direct Debit" system in Serbian banks.

eKapija: How does "Direct Debit" function?

- A client issues an order in his bank for taking certain amount from the account of another client and transferring it to his own account. When it comes to the classical system of payments, it is possible only to take the fixed amount, while here it is allowed to pay variable amounts. Telephone and heating bills are variable.... These obligations are constant, but the amounts are variable. In the direct debit, the recipient can simply point to a different amount every time. However, in the countries where setting the authorizations for direct debit is simple enough, the service can also be used for one-off payment in business mail orders. In order for the system to function, it is necessary that all participants in such process, banks' clients, give their consents. Although we already have a system of payments, the essence lies in the establishment of a unique system of payments in all countries in the European Union and making it impossible for a client to see a difference when paying for something in Spain to the account of a client in Belgium. That should be a unique system with the same rules, lower costs and a quick and efficient money transfer.

eKapija: When will "Direct Debit" service be available in Serbia?

- There are three pillars within SEPA rules - cards, "Direct Debit", and credit transfer. The card business in Serbia is well developed, we expect to introduce "Direct Debit" by the end of the year, while the credit transfer should be introduced in late 2011. We would be the first in this part of Europe to introduce SEPA rules.

eKapija: People in the banking circles talk about the central register of authorizations, as well as about the automation of the payment of bank bills. Can we expect the service of UBS in these fields as well?

- It is logical that the central register of bank bills be in the Association of Banks. The talks we had earlier were going in that direction, but a provision was adopted last year that the National Bank of Serbia or some other company chosen by NBS be put in charge of the central register. We are getting ready for the negotiations on placing the central register within UBS.

eKapija: Is it necessary for laws to be changed in order for "Direct Debit" to function in Serbia?

- Amendments to the Law on Payment Operations are not required in the first phase. However, with the inclusion of the government institutions, customs, tax administration and public companies, certain changes in the payment operations will be necessary. That means that we will need to bring our regulations in accord with the standards in the EU.

Preconditions for application of SEPA standards and services in Serbia

Application of basic "Direct Debit" system

Law on Payment Operations

Law on Bank Bills

Harmonization of business rules

Harmonization of technical requirements

Education of potential clients

Raising of the level of IT literacy

Smaller pressure on banks' windows

Benefits of the use of "Direct Debit" system

Cheap and quick service

Clients save both time and money

Various terms of payment

Less pressure on windows in banks

Increased number of non-cash (electronic) transactions

Automated processes

Full security of transaction

M.K.

Comments
Your comment
Full information is available only to commercial users-subscribers and it is necessary to log in.

Forgot your password? Click here HERE

For free test use, click HERE

Follow the news, tenders, grants, legal regulations and reports on our portal.
Registracija na eKapiji vam omogućava pristup potpunim informacijama i dnevnom biltenu
Naš dnevni ekonomski bilten će stizati na vašu mejl adresu krajem svakog radnog dana. Bilteni su personalizovani prema interesovanjima svakog korisnika zasebno, uz konsultacije sa našim ekspertima.