As of 29 October 2020, the NKSInst, a new payment system launched in the Republic of Croatia, will enable the banks participating in that payment system to execute interbank instant payments in kuna.
The NKSInst is a payment system authorised by the Croatian National Bank, in accordance with the provisions of the Payment System Act. This payment system enables the execution of the so-called instant payment transactions, which implies their execution in almost real time, i.e. within a standard time frame of not more than ten seconds. Within this time frame, the payer’s IBAN account is debited, the interbank clearing of the initiated instant payment transaction is executed and the IBAN account of the payee is credited. As regards the standard time frame for the execution, and in view of the nature and purpose of the instant payment service, the NKSInst will endeavour to provide technological solutions to reduce to four seconds the time needed for the execution. The maximum amount of an individual instant payment transaction is set at HRK 100 000. The NKSInst enables the execution of payment transactions 24 hours a day, 7 days a week and 365 days a year (24/7/365). The operator of the NKSInst payment system is the Financial Agency.
The emergence of instant payments throughout the world is the result of the use of new technologies and users’ demands for faster execution of payment transactions. Instant payment systems such as the NKSInst provide an infrastructural precondition for the execution of instant payments between clients using different payment service providers. The future development of instant payments may prompt further development of quality payment services and the use of modern technologies. In that regard, the establishment of the NKSInst payment system makes it possible to be on top of current trends in the development of modern payment services in the territory of the Republic of Croatia.
The participation in the NKSInst payment system is limited to banks only and participation is voluntary. In accordance with their business decisions, the banks define the dynamics at which they will enable individual client categories (consumers, business entities) to execute instant payments and the payment channels (internet, mobile banking, and mobile applications) that may be used by clients to execute instant payments.
As of 29 October 2020, the NKSInst payment system will make it possible for the participating banks to offer their clients the instant payment service. The banks currently participating in the NKSInst payment system include Hrvatska poštanska banka d.d., Partner banka d.d. and Privredna banka Zagreb d.d.
The Croatian National Bank strongly encourages and supports the development of new and modern payment services in accordance with best global practices and expects to see that other banks will ensure all the necessary preconditions in 2021 to provide the execution of interbank instant payments to their clients.
The NKSInst ensures the execution of payment transactions in accordance with the standards of SEPA instant payment scheme used in EU member states for payments in euro. As of the date of introduction of the euro as the official currency in the Republic of Croatia, this payment system will be aligned with all the standards for payments in euro.