Many citizens struggling to make ends meet are unaware that they are entitled to free banking services. These include opening, maintaining, and closing accounts, cash deposits and withdrawals, either at a counter or an ATM, both during and outside of banking hours, as well as up to ten national transactions per month.
Although the law regulating payment accounts and related fees mandates banks to provide these services free of charge to individuals receiving minimum income, social assistance, personal disability benefits, care and assistance allowances, or unemployment benefits, only a small number of eligible individuals use this right.
Vice Governor of the Central Bank of Montenegro, Zorica Kalezić, revealed that out of more than 50,000 citizens in vulnerable categories, only 1,562 have opened a basic account. This indicates low awareness and the need for stronger financial education.
Bank obligations
Kalezić emphasized that, under the law, fees for direct debits, card transactions (including online payments) and credit transfers (including standing orders) cannot exceed 70% of the fees paid by other basic account holders.
Fee information for basic accounts is available on the websites of five major banks—Adriatic, CKB, Hipotekarna, ERSTE, and NLB—due to their market share. The Central Bank of Montenegro also provides this information on its website. However, each bank determines fees for specific services through internal policies, and the central bank has no authority over these decisions.
The law was aligned with the EU’s PSD2 directive in October 2022 and was further updated in February 2024 to fully comply with EU regulations and international standards. According to this law, banks must inform customers of any fee changes at least two months in advance. Customers who disagree with new fees can terminate their contracts without being charged if the contract has been in place for at least six months.
Additionally, since January 2023, individuals facing financial difficulties or living in remote areas can open a basic payment account easily and without extra costs. This service is available to all residents with legal status in Montenegro, with most banking services provided free or at reasonable fees, except for credit card transactions, which follow standard bank pricing.
Croatian model
Regarding the Croatian model, which offers basic accounts to all citizens rather than just vulnerable groups, Kalezić noted that in Montenegro, even those already eligible for free accounts rarely use them. Therefore, expanding the subsidy to all citizens may not be justified, especially for those with stable financial situations.
Instead of eliminating banking fees for all, the priority should be to improve financial education and increase awareness of available services.
The Central Bank of Montenegro is committed to maintaining financial stability and improving payment system efficiency while adhering to regulations and best European practices. It supports initiatives that reduce costs and improve conditions for individuals and businesses while ensuring market principles are upheld.
Between January 2024 and February 2025, 78% of the banking sector did not increase fees, indicating that fee growth is primarily due to economic cycles and increased payment volume rather than deliberate bank pricing policies.
SEPA and payment reforms
Montenegro officially joined the SEPA payment area in November 2023, with SEPA-based payment services set to begin in October 2025. The benefits include lower transaction costs and faster processing. Currently, transactions between Montenegro and SEPA countries can incur fees exceeding €30 for amounts up to €5,000, but these costs will be significantly reduced. SEPA integration is expected to save individuals and businesses €10 million annually.
Alongside SEPA integration, the Central Bank, in cooperation with the Bank of Italy, launched the TIPS Clone project. This system, which replicates the EU’s instant payment network, will enable 24/7 transactions within Montenegro, processed in under 10 seconds. The project began in January 2025, with full implementation expected by July 2026.
These reforms aim to modernize Montenegro’s payment system, making it more efficient and accessible while preparing the country for full adoption of the EU’s TIPS system upon accession.
