The Board of the Central Bank approved the Regulation on the Structure and Use of the Unique Identifier of the Payment Account (IBAN) for National and International Transactions

The Board of the Central Bank, at the meeting of 29 November 2023, approved the Regulation on the Structure and Use of the Unique Identifier of the Payment Account for National and International Transactions, which will enable the equipment with the identification code (known as KIO) of payment accounts even for non-bank financial institutions authorized by the CBK for the provision of payment and electronic money services.

Payment accounts offered by non-bank financial institutions will now be subject to the same standardization and IBAN format rule used so far only for bank accounts.

According to this regulation, the structure of the IBAN (international account number), BBAN (basic account number) and the identification code of the payment service provider (KIO) will be determined correctly. Also, the functions and obligations of the CBK, as well as payment service providers in relation to the standard of payment accounts, are defined. The use of the standard defined in this Regulation will create several advantages in the payment market, such as:

• Using the IBAN standard also for payment accounts offered by non-bank financial institutions increases their interoperability with bank accounts and creates space to expand competition in the market of payment services.
  
• The use of the KIO identification code by non-bank financial institutions, as the initiator or beneficiary of credit or direct debit payment transactions, will enable the identification of the payment transactions of these institutions in the Interbank Payment System – KIPS, but will also facilitate the exchange of payment transactions between banks and non-bank financial institutions.
  
• The IBAN standard used in payment transactions by non-bank financial institutions will facilitate identification procedures for customers ordering and receiving payment transactions, as well as create facilities for combating financial abuses;
  
• Within the IBAN, through the KIO code, the initiators/receivers of payments are clearly identified at the local but also international level;

These changes are part of the actions of the Central Bank within its Strategy, with the vision of creating a modern and comprehensive small value payment market in Kosovo, supported by a secure and efficient payment infrastructure as well as a wide range of payment instruments and services.

The main goal of this initiative is to offer payment users more solutions, in as many places as possible, for carrying out transactions, in more convenient and cost-effective ways, in support of the objective of increasing and expanding financial inclusion in the country. You can find the approved Regulation in the following link:

https://bqk-kos.org/wp-content/uploads/2024/10/Rregullore-per-IBAN-28-nentor-23-1.pdf