meta_id 3379016

The Central Bank of Bosnia and Herzegovina (CBBH) established a domestic instant payment system, representing the most significant modernization of Bosnia and Herzegovina's payment infrastructure in 25 years. The system became operational with three commercial banks—Intesa Sanpaolo Banka BiH, Raiffeisen Bank, and Sparkasse Bank d.d. BiH—joining on the first day after completing necessary technical adjustments and testing. These three banks collectively represent approximately one quarter of total banking sector assets in Bosnia and Herzegovina. The instant payment system enables payment transactions to be executed within seconds, 24 hours daily, seven days weekly, throughout the year, including weekends and holidays. Citizens and businesses can access immediate fund availability, while the economy benefits from faster capital inflow, improved cash flow management, and enhanced liquidity. Banks gain modern infrastructure for developing digital services and improving user experience. The CBBH's transaction processing fee for the instant payment system is lower than the existing giro clearing system fee. The system was established following the European instant payment system model, adapted for Western Balkans countries by the Bank of Italy with European Central Bank consent. The European Union provided EUR 2 million to support development and first-year maintenance through the TIPS Clone Project, with implementation supported by the European Commission and the EU Delegation in Bosnia and Herzegovina. The CBBH plans further system development through introducing new functionalities and overlay services, including QR code payments and, subsequently, cross-border payment capabilities. Additional commercial banks will join the system gradually as they complete technical and operational adaptations. The CBBH adopted the Rules of Operation of the Instant Payment System of Bosnia and Herzegovina to establish operational, technical, and regulatory conditions for system functioning.