EuroNCS clears payment transactions initiated according to the European Payment Council scheme for the execution of SEPA credit transfers and SEPA direct debits. SEPA is the Single Euro Payments Area.

The EuroNCS payment system became operational on 6 June 2016 in accordance with the National SEPA Migration Plan. It cleared SEPA credit transfer payment transactions in euro and, after the introduction of the euro as the national currency in Republic of Croatia, it also starts clearing SEPA direct debits in euro.

The Financial Agency (FINA), as the system owner and operating manager, is responsible for the implementation, the setting up and operational management of the EuroNCS payments infrastructure.

FINA ensures the EuroNCS technical interoperability in such a manner that it enables the execution of cross-border and equal national payment transactions by connecting with another SEPA payment system that clears the received payment transactions or further sends them for clearing in another connected SEPA payment system.

The rules of operation of the EuroNCS payment system govern the basic rules and the mode of operation of EuroNCS.

The clearing of interbank payment transactions takes place in four clearing and settlement cycles and is determined by the Work Schedule for clearing payment transactions in EuroNCS.

When processing the received payment orders, SEPA credit transfers (SCT) and SEPA direct debits (SDD) are distinguished.

Banks have open clearing accounts in EuroNCS, and the system processes interbank payments of SEPA credit transfers (SCT) and SEPA direct debits (SDD), which are fully aligned with the requirements of Regulation (EU) No 260/2012.

The above SEPA Regulation requires the operators of retail payment systems in the European Union to ensure the interoperability of their system with other retail payment systems in the EU so that their participants are reachable for SEPA payments that are initiated by SEPA credit transfer payers or SEPA direct debit payees (if the payer is the consumer), irrespective of in which member state the initiators of such transactions are located.

With the introduction of the euro in the Republic of Croatia, the clearing of national and cross-border SDD payments in euro is implemented under the clearing and settlement model that is operationally applied for SCT payment transactions.

EuroNCS executes SCT and SDD cross-border payment transactions using the model which is interoperable with retail clearing payment systems of other EU member states – through the pan-European payment system EBA Clearing STEP2, and EACHA model, bilateral relations with other clearing systems. A full SEPA availability for all EuroNCS participants is achieved in the described way.

The CNB has a role in enabling the cross-border interoperability and full availability of the EuroNCS  payments infrastructure with other payment systems in the SEPA area as a direct participant in the European payment system from another EU member state and at the same time plays the role of a bank (agent) for the settlement of cross-border payment transactions of participants in EuroNCS.

The settlement of final net positions in the clearing accounts of banks in EuroNCS (SCT and SDD) per clearing settlement cycles is executed in the TARGET-HR national component (in the RTGS service).

The CNB has an ongoing control and supervision over the EuroNCS system and the possibility of insight into the balance of the clearing accounts of direct participants in EuroNCS.

Documents and useful links

EuroNCS – Financial Agency (FINA)

SEPA – Single Euro Payments Area

SEPA – Croatian National Bank

SEPA – European Central Bank

SEPA – European Payments Council