The European Parliament, the European Commission and the Council of Ministers have extended the migration period to Single Euro Payments Area (Sepa) credit transfers by six months, the Central Bank said.

Sepa migration end-date regulation had established February 1 as the date when national credit transfer and direct debit schemes in the euro area had to cease operation and be replaced by the new Sepa credit transfers and direct debit schemes.

Due to the low Sepa migration pace for SCTs and SDDs registered in a number of EU countries till the end of 2013, the EP, EC and the Council of Ministers decided, in February, to extend the migration period by another six months, so as to ensure full compliance and minimise the potential risk of market disruptions.

In view of this extension, the Central Bank of Malta, as the appointed competent authority for Sepa in terms of the regulation, decided to extend, locally, the Sepa migration end-date for SCTs by three months until May 1 and by six months for SDDs until August 1.

These extended periods were being granted in view of the on-going progress that was being registered, whereby national and cross-border SCT migration increased from 42 per cent compliance in December to 80 per cent in February, while SDD migration increased from 46 per cent compliance in December to 75 per cent in February.

The Central Bank and the Malta Bankers’ Association urged payment service users, such as corporates using payroll software for credit transfers and service providers using direct debits, to maintain the momentum towards achieving full Sepa compliance in the shortest time possible within the newly established timeframes, after which national non-Sepa compliant direct credit and direct debit transactions will no longer be accepted for processing by payment service providers.