The implementation of the Single Euro Payments Area (SEPA) aims at expanding the process of European integration so as to include the field of retail payments in euro by creating a single European market for euro payment instruments.

Initially, SEPA covered a geographical area comprising the 27 EU Member States as well as Iceland, Liechtenstein, Norway, Switzerland and Monaco. Nowadays, SEPA includes 34 European countries, as well as non-EU territories, due to arrangements for participation in SEPA of non-EU/non-EEA financial institutions/communities. Conceptually, SEPA is an area in which all payments in euro, including cross-border payments, are considered national payments (no difference is further made between national and cross-border payments).

The introduction of SEPA is meant to ensure an appropriate level of efficiency and competition on all markets. That should foster important economies of scale and ensure high competitiveness to the European economy.

In order to ensure the desired transparency of payment infrastructure providers migration to the new SEPA standards, the Eurosystem published a set of compliance criteria that must be observed by all infrastructure providers and the terms of reference based on these criteria. Observing these terms of reference, payment infrastructures conduct self-assessments that are subsequently released to the public.

SEPA is being achieved by:

• adoption of a single set of payment instruments for euro payments (credit transfers, direct debits and card payments);
• implementation of efficient processing infrastructures for euro payments (referred to as settlement and clearing mechanisms);
• adoption of common technical standards for payment transactions processing;
• adoption of common business practices by the payment service providers;
• creation of a harmonised legal basis for the payment services (including transposition of the new Directive on payment services in the internal market - Payment Services Directive - into the Romanian legislation);
• further development of new customer-oriented services.

The SEPA project, coordinated by the European Retail Payments Board, is carried out by the European banking sector and coordinated by the European Payments Council, being underpinned and promoted by the European Central Bank and the European Commission and the EU central banks. The European Commission had also legal responsabilities in this project, apart from its role as a catalyst.

The European Commission had also legal responsabilities in this project, apart from its catalyst’ role. Based on a proposal of the European Commission it was published on 14 March 2012, Regulation (EU) No 260/2012 which establishes, among others, a deadline for completing the migration to SEPA standards for transfer credits and direct debits in SEPA countries. Initially, the provisions of Regulation (EU) No 260/2012 set 1 February 2014 as the deadline for completing the migration to SEPA in the euro area for credit transfers and direct debits in euro. Subsequent amendments to this Regulation have been mad. By Regulation (EU) No 248/2014,amending Regulation (EU) No 260/2012, the deadline has been extended until 1 August 2014. Starting with that date, payment service providers in euro area countries shall use SEPA standards for national and cross-border credit transfers and direct debits in euro. The compulsory standards in the field of payments are IBAN (International Bank Account Number) and BIC (Bank Identifier Code), while in the case of financial service messaging, the use of ISO 20022 XML standard is mandatory. Using these standards is a prerequisite for ensuring full interoperability across the EU and will allow payment service users to make credit transfers and direct debits in euro benefyting by similar conditions in SEPA. Non-euro area member states have to comply with the requirements of the Regulation as of 31 October 2016.

The European Central Bank and the European Commission share a common vision for the SEPA and constantly monitor and support its completing. For more information see the joint press release issued on 4 May 2006.

Euro Retail Payments Board has been established in December 2013 at the European Central Bank’s initiative in order to replace and take over the tasks of the SEPA Council. The ERPB mission is to support and promote the development of an integrated, innovative and competitive market for euro retail payments within the single payments area.

The ERPB mandate and management are more extended than those of the SEPA Council. The new ERPB management structure aims to strike a balance between the stakeholders interested in ensuring the provision of highly efficient payment services, comprising seven representatives of payment service users (e.g. representatives of consumers, retailers and corporates) and seven representatives of payment service providers (credit institutions, payment institutions and electronic money institutions). In addition, the ERPB management includes five representatives of euro area national central banks (NCBs) and one representative of the non-euro area NCB community. The ERPB is chaired by a high-level representative of the ECB. The European Commission is invited to join the ERPB as an observer.

At the national level, SEPA project is coordinated by the Romanian Banking Association, a body representing the national banking community within the European Payments Council and which has also assumed the role of governance authority of the national SEPA RON payment schemes.

In Romania, SEPA project is carried out in accordance with the provisions set out in the National SEPA Implementation and Migration Plan . This plan encompasses the strategy elaborated and adopted by the local community for the implementation of SEPA and the migration towards the use of the new payment instruments (SEPA project organisation at national level, the components related to project planning, organisation and management, as well as the commitments and cut-off dates assumed by all stakeholders in order to complete the migration).

The last version (v3.0) of the National SEPA implementation and migration plan was finalized and approved by the National SEPA Committee in October 2009 and the official document is currently published on the European Central Bank's website.

The governance structure of SEPA project at national level is the following:

• SEPA National Committee, a decision-making body having responsibilities in drafting the strategy of SEPA and coordinating its implementation across the entire local community. It was established in March 2008 with the participation of the Romanian Banking Association, the Ministry of Public Finances and TRANSFOND. The committee is responsible inter alia for the approval of the SEPA National Implementation and Migration Plan;
• SEPA Commission, established at the level of the Romanian Banking Association in March 2007, in charge of organising debates on the issues pertaining to the manner of implementing SEPA at national level;
• SEPA project team, founded under the auspices of the Romanian Banking Association, with a structure similar to that of the European Payments Council, responsible for the roll-out of SEPA project at national level and, most notably, for drafting the SEPA National Implementation and Migration Plan.

Romanian Banking Association initiated also the set up of the National SEPA Forum, a consutativ body encompassing all categories of entities benefiting of SEPA (corporations, medium and small enterprises, large retailers, utilities providers, consumers, etc.)

NBR acting as a catalyst for private sector activities in the field of retail payment systems support the implementation of SEPA in Romania by participating as an observer in activities performed by SEPA Commission and SEPA National Committee.

NBR has assumed the following tasks related to SEPA:

• to guide and foster the expectations of Romanian stakeholders regarding SEPA;
• to cooperate with the public administration which is expected to be among the frontrunners in using SEPA products in Romania;
• to cooperate with consumers in general so that their expectations be made known to SEPA National Committee;
• to contribute to the co-ordination of communication efforts at national level; and
• to monitor the progress in implementing SEPA at national level.

Based on its statutory tasks concerning the promotion and monitoring of payment systems, in June 2012, the National Bank of Romania sanctioned the adoption and implementation of the SEPA RON credit transfer national payment scheme, and in December 2013, it approved the SEPA RON direct debit national payment scheme. The national payment schemes use the standards and rules applicable to European payment schemes based on the authorisation granted by the European Payments Council.