The CBCG Governor Signs the Letter of Intent for Implementing the TIPS Clone Project
10/01/2025
The CBCG Governor, Ms Irena Radović, and the Bank of Italy’s Governor, Mr Fabio Panetta, signed the Letter of Intent for implementing the TIPS clone project in Rome today. This document formalises their cooperation in establishing a modern instant payment system in Montenegro. The Letter of Intent was also signed by the Central Bank of Bosnia and Herzegovina’s Governor, Ms Jasmina Selimović, the Central Bank of Kosovo’s Governor, Mr Ahmet Ismaili, and the Bank of Albania’s first deputy Governor, Ms Luljeta Minxhozi. It marks a significant step towards modernising the payment system in the region. The CBCG Vice-Governor, Ms Zorica Kalezić, was also part of the delegation during the visit to the Bank of Italy.
The TIPS clone system, developed based on the European TARGET Instant Payment Settlement (TIPS) system model, with the support of the European Central Bank, will enable Montenegro’s citizens and businesses to make real-time instant payments 24/7. The system will improve the speed, security and efficiency of financial transactions, significantly reduce payment costs and simplify the daily financial activities of citizens and companies. Implementation activities for the signed agreement between the central banks of Italy and Montenegro are set to begin in January of this year, with the system expected to be operational by June 2026.
Governor Panetta said that “this achievement results from many years of dedicated efforts, strong relations and continuous technical cooperation between our central banks.” He confirmed the Bank of Italy’s readiness and commitment to support the involved central banks in their efforts to modernise payment systems.
Governor Radović highlighted that implementing the TIPS clone project further strengthens Montenegro’s ties with the European payment area and confirms the CBCG’s commitment to the financial system’s modernisation and digitisation. “This project contributes to creating a modern and efficient payment system, aligned with European standards. We enable citizens and the economy simpler and more favourable payments, directly improving the quality of life and business in Montenegro,” said Governor Radović.
The TIPS clone will allow Montenegro to establish a modern instant payment system that is compliant with European standards and pave the way for a smooth transition to the original TIPS system after joining the European Union.
The TIPS clone is an additional step towards integrating Montenegro into the European payment area, enabling harmonisation with SEPA standards and facilitating the transition to the cross-border SEPA instant scheme. It creates the conditions for faster, safer and more efficient cross-border payments, further strengthening Montenegro’s economic connection with the EU member states and the region.
Additionally, CBCG will work on supplementary services of the instant payment system, such as QR code, which enables fast and simple payment by scanning via mobile phone, and the “request to pay” functionality. This feature will allow sellers and service providers to send electronic payment requests to customers, who can then review and approve the transaction through a mobile application without manual data entry. These innovative solutions will contribute to modernising the payment system, simplifying payments, and minimising the risk of errors.
Today’s signing of the Letter of Intent is crucial to Montenegro’s path to the European financial area and the European System of Central Banks (ESCB).