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F ederal Reserve Bank of Dallas DALLAS, TEXAS 75222 C i r c u l a r No. 78-45 April 19, 1978 TO ALL BANKS AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: In o u r C i r c u l a r No. 77-116, d a te d O ctober 19, 1977, we a n n o u n c e d t h a t a new p r o g r a m had b e e n d ev elo p ed by a joint American B a n k e r s A ss o c ia tio n / Federal R e s e r v e Syste m (ABA/FRS) ta s k fo rce to r e d u c e th e n u m b e r of c heck p r o c e s s i n g e x ceptio n items. T h is p r o g r a m in c o r p o r a te s the a d ditio n of a check d ig it in th e ro u ti n g n u m b e r field on c h e c k s , a n d is s c h e d u le d for implementation on J u l y 1, 1978. T h e p r i m a r y p u r p o s e of in c lu d in g the ch ec k d i g i t in the MICR line is to e n ab le b a n k s a n d p r o c e s s i n g c e n t e r s with automated ch ec k p ro c e s s in g o p e ra tio n s to r e g e n e r a t e a n y sin g le d ig it in the ro u tin g n u m b e r field if that d ig it c an n o t be re a d b y a r e a d e r / s o r t e r . T h e ch ec k d ig it will also e n a b le su ch b a n k s a n d p r o c e s s i n g c e n t e r s to d e te c t a n d re je c t m is re a d items in the ro utin g n u m b e r fie ld , as is c u r r e n t l y done by many b a n k s a n d p r o c e s s i n g c e n t e r s w ith r e g a r d to th e a cc o u n t n u m b e r field . T h u s , c h e c k s with the new ch ec k d ig it en co ded on them will b e g in to e n t e r the c heck collection s tre am on J u l y 1, 1978. So that you will b e p r e p a r e d to h a n d le th e s e items, we ha v e d e v e lo p e d a " ch e c k lis t" of th in g s to do b efore th at d a te . C h ec k lis t Genera l Know y o u r c h e c k d i g i t . Y our c h e c k d ig it is the same d i g i t th a t is c u r r e n t l y bein g u s e d in t r a n s f e r r i n g f u n d s a n d s e c u r i t i e s o v e r th e Fe de ra l R e s e r v e Communications N etw ork. T h e c h e c k d ig it a s s i g n e d to each financial d e p o s it o r y in s titu tion c an b e found in th e 1975 o r la te r editio n s of the Rand McNally p u b lication e n title d Key to Routing N u m b ers |~ 1 C ontinue to u s e e x is t in g c h e c k stock until s u p p lie s a r e e x h a u s t e d , ev en ~ afte r th e J u l y 1, 1978 implementation d a te . T h e s e n o n - c h e c k d ig ite d c h ec k s c an still b e u s e d a f te r J u l y 1 w itho u t c a u s i n g a n y p rob le m s for th e new program. Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank: 1-800 -492 -440 3 (intrastate) and 1-800 -527 -497 0 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - Specify the n i n e - d i g i t ro u tin g n u m b e r for y o u r institution w h en placing new o r d e r s for c h e c k s that a r e to be u s e d a fte r J u l y 1, 1978. Your commercial c h e c k p r i n t e r has b e e n notified of th is c h an g e in s p e c ifi c atio n s a n d sh ou ld be a b le to a s s i s t you in the o r d e r i n g of c h e c k s with the new n i n e - d i g i t r o u tin g n u m b e r . D Note the a p p e a r a n c e of the MICR line w hic h con tain s a check d ig it. (The ro u tin g n u m b e r in fr actional format o r linear format located in th e u p p e r r i g h t - h a n d c o r n e r of the ch ec k will not c h a n g e . ) t --CRET - URN NWf E-d For th ose in stitu tio n s i n t e r e s t e d , a re c e n t p u blic a tio n en titled Routing N umber E x c e r p ts from th e Final R eport of th e ABA/FRS Check Digit T a s k Force is a v a ila b le for p u r c h a s e from the A m erican B a n k e r s A ss o c ia tion. Softw are C h a n g e s Make a n d te s t the n e c e s s a r y c h a n g e s to y o u r ch ec k p r o c e s s i n g softw are syste m to accommodate the new n i n e - d i g i t format before J u l y 1 . T h o s e in s titu tio n s u s in g a v e n d o r - s u p p l i e d softw are p a c k a g e sh o uld contact th e i r v e n d o r to d e te rm in e if the y will s u p p l y the n e c e s s a r y softw are modifi c a tio n s . It is e sse ntia l th a t all institu tio n s h a v e th e se c h a n g e s made before J u l y 1; th o s e failing to do so will e x p e r i e n c e an e v e r in c r e a s in g re je c t r a t e as n i n e - d i g i t items become more p r e v a l e n t in the c h e c k collection system . H a r d w a r e C han g e s O Make th e n e c e s s a r y h a r d w a r e c h a n g e s to y o u r c h e c k p r o c e s s i n g h a r d w a r e , if a n y . In most i n s t a n c e s , th e r e p la c e m e n t of the d a s h with a n u meric c h a r a c t e r is accommodated b y a softw are modification only . H ow ever, - 3 - in a few in s ta n c e s (d e p e n d in g on the ty p e of r e a d e r / s o r t e r ) h a r d w a r e c h a n g e s , s u c h a s additional m em o ry , a r e n e c e s s a r y . T h e jo int ABA/FRS ta s k f o r c e h a s d e te r m in e d that t h e r e is a sig n ific a n t cost s a v i n g s for th e b a n k in g i n d u s t r y a ss o c ia t e d with th is new p r o g r a m . In o r d e r to a c c r u e the b e n e fits th a t will be g a in e d from th e p r o g r a m , it is e x tre m e ly im po r ta n t th a t all financial d e p o s it o ry ins titu tio n s become fa m iliar with the p r o g r a m , and take th e n e c e s s a r y s te p s as outlin ed ab o ve to i n s u r e th a t t h e i r ch ec k p r o c e s s i n g s y s te m s will be c a p a b le of h a n d lin g th e new c h e c k - d i g i t e d c h e c k s on J u l y 1, 1978. If you have a n y q u e s ti o n s p e r t a i n i n g to the ab o v e information, p le a se c o n tact L a r r y J . R eck , A s s is ta n t Vice P r e s i d e n t a t th is B ank, Ext. 6337; Joel L. Koonce, J r . , A s s is ta n t Vice P r e s i d e n t a t th e El Paso B r a n c h , 915-544-4730; V ernon L. B a r te e , A s s is ta n t Vice P r e s i d e n t a t the Houston B r a n c h , 713-659-4433; o r Robert W. S c h u ltz , A s s is ta n t Vice P r e s id e n t a t the San Antonio B r a n c h , 512-224-2141. S in c e r e ly y o u r s , Robert H . Boykin F i r s t Vice P r e s i d e n t
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