French banks call for Sepa DD interchange mechanism

French banks call for Sepa DD interchange mechanism

The French Banking Federation has hit out at recently proposed EC Sepa migration regulations - arguing that they handicap implementation and undermine the interbank system - and called for an interchange mechanism for the direct debit instrument.

Last month the EC finally set out its proposals for EU-wide end-dates for the migration of national credit transfers and direct debits to Single Euro Payments Area (Sepa) instruments.

French banks say that the regulation establishes new technical and pricing requirements and they are "displeased" that the provisions have now been put in place after Sepa has already gone live.

"This kind of instability generates operational problems and additional costs for all economic operators," says a statement.

The FBF also objects to the EC's move to "prohibit the remuneration of interbank services" without offering another economic model, "thus undermining the very principle of the interbank system as we know it".

With talks set to begin on the draft regulation, the body is calling on the EC to "maintain an interchange mechanism for Sepa direct debits and to eliminate the newly proposed technical requirements".

French banks have dragged their feet in the past on Sepa direct debits, pushing back the implementation date by a year.

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