NBU introduces the international Bank account number IBAN: what it means for the population

The national Bank is introducing the international Bank account number IBAN, which gives the opportunity to harmonize Ukrainian payment space with the European one.

НБУ вводить міжнародний номер банківського рахунку IBAN: що це означає для населення

According to the NBU, on April 1, 2019, banks will open new customer accounts in the IBAN standard, and existing account numbers from April 1 to October 31, 2019, banks will be expected to change in accordance with the requirements, informs Rus.Media.

The result of a valid customer account numbers will be added with country code and Bank code.

What is an IBAN?

The acronym means International Bank Account Number is translated to English as the international Bank account number. The system began the development of the International organization for standardization jointly with the European Committee for banking standards.

Already, 46 countries have moved to this system of identification. In particular, this standard system of Bank accounts in the EU countries. Each country independently sets the number structure of the IBAN, ISO 13 616.

Ukraine IBAN account numbers will consist of 29 characters. They are divided into two groups. The first 10 digits – country code, check number and Bank code.

The first two letters EN indicate the country code, in this case Ukraine. Following the country code, two symbols of control, they are designed to authenticate bills and protect the information from errors in data entry. The following six figures, the MFO code of the Bank.

The second group of symbols, consisting of 19 characters, is the customer account number of the Bank. The first in this group, four zeros, tend to complement IBAN to 29 characters. And the last 15 characters are immediately a customer account number.

How will the change of Bank accounts of Ukrainians?

“The introduction of the National Bank international Bank account number IBAN is to facilitate the modernization of the system of electronic payments of the NBU and the Ukrainian payment and harmonizes the space with the European”, – reported in Facebook, the Director of Department of payment systems and the innovative development of the NBU Alexander yablunivka mountain.

According to him, during the transitional period from 1 April to 31 October this year, banks will do the following:

  • form a new Bank account number (IBAN) for new accounts in accordance with the requirements of ISO 13 616;
  • alone will change the numbers of existing customer accounts in accordance with the requirements of the standard IBAN;
  • will provide information to clients about changing accounts, to make changes in contracts required;
  • will report to the State fiscal service about the change and closing of customer accounts.

The banker noted that in the transition period, from 1 April until 31 October 2019, Bank customers details of the settlement documents will have the ability to specify valid account number and Bank code, and number in the IBAN standard.

Subsequently, the use of IBAN will be mandatory for all clients of all Ukrainian banks in the implementation of money transfers both in national and foreign currencies, including cross-border transfers. That is absolutely all translations will be carried out only with the use of IBAN.

The new system design will be easier to identify the payer and the payee, and the Bank that serve them. This will allow to avoid mistakes in the account details, thanks to the reduction in the billing document details and can be quicker to transfer and receive funds.

Among other advantages to Bank customers use IBAN in the future will make it possible to use the QR-code, which will contain information about the IBAN is to simplify the payment of invoices and exchange of payment information.