All citizens, corporate, banking institutions, public administrators will be affected by this scheme……Several financial services challenges came to the forefront during the last one decade in all the European countries and SEPA came into existence during the period, 2002-2005 to solve some of the outstanding payment problems.During the year 1999, Euro was introduced along with the Economic and Monetary Union, for all EU member countries. The introduction of Euro was aimed to achieve the political and economic goals of the European Commission, for having a single European market, where Euro could move freely between the member countries. However, the introduction of the Euro was not sufficient to create a single financial services market.Hence, EU commission launched a financial strategy named as Financial Services Action Plan (FSAP) in the year 2000. This step was taken in the direction of creating a single payment area where all transactions by all the citizens of the EU member states can freely and safely make all cross border payments, in a way similar to making transactions in their own country. While FASP formulated 42 rules for this purpose, the new International Accounting System (IAS), the Markets in Financial Instruments Directive (MiFID) and Basel II are some of the important measures taken under FASP.Various important European financial players held a meeting in March 2002 to discuss the progress of FASP and take it forward for making a single Euro-zone payments infrastructure. While representatives attended this meeting from 42 European banks, European Banking Association, Others concerned with payments issue also attended The plan to introduce SEPA was launched in this meeting, where the European Payments Council (EPC) was also created for proper guidance and implementation of SEPA.
What is Single Euro Payments Area