Instant Payments Serbia: The NBS IPS System of the National Bank of Serbia

National Bank of Serbia as a Catalyst of Innovation

In addition to achieving its primary objectives—monetary and financial stability—the National Bank of Serbia (NBS) is also committed to promoting innovation and strives to act as a catalyst of the development of the Republic of Serbia’s financial system. From my first day as central bank governor, I have placed innovation and digitalization activities high on the list of NBS priorities. In the last eight years much has been done in this field. Not only normative reform, but also many activities aimed at further development of payment infrastructure. Looking back, I can freely say that we have achieved significant results.

First, we implemented a modern, sound and comprehensive regulatory framework for payment systems, payment services and electronic money issuance, in accordance with EU legislation. This way we opened the door for further digitalization and development of innovative payment services and we provided conditions for further development of payment infrastructure in our country. In addition to this, we introduced a mechanism to support fintech development—the Regulatory Sandbox. Video-identification of financial services users has been enabled and now users don’t have to go to the bank premises to open their account, because all that needs to be done can be done from their homes.

Our latest activity included participation in the process of drafting the Law on Digital Assets, which was adopted by the National Assembly of the Republic of Serbia in December 2020 and which introduces a legal framework for digital tokens, virtual currencies and other digital assets.

Also, projects focused on research of the potential for blockchain technology usage for the purpose of central bank’s activities have been analysed, as well as a potential further usage of artificial intelligence.

First Instant Payment System in the Balkan Region

What stands out as one of the most important projects in the field of innovation and payment system modernization is the NBS IPS payment system, launched on 22 October 2018 as the first instant payments system in the Balkan region. Before 2018, the NBS operated five payment systems: RTGS payment system, Clearing payment system, Interbank FX clearing system, International FX clearing system and DinaCard clearing system.

The NBS IPS system is the first payment system in the country that enables ...