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Board of Governors of the Federal Reserve System
The Federal Reserve, the central bank of the United States, provides the nation with a
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Home > News & Events > Press Releases

Press Release
September 30, 2010

Federal Reserve announces implementation
date for changes to the Payment System Risk
Policy
For immediate release
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The Federal Reserve Board on Thursday announced that it will
implement changes to its Payment System Risk (PSR) policy on March
24, 2011. The Board approved these revisions in late 2008 for
implementation approximately two years later, following substantial
changes to the Reserve Banks' credit risk management infrastructure.
The revised PSR policy explicitly recognizes the Reserve Banks' role in
providing intraday credit to healthy depository institutions and
establishes a zero fee for collateralized daylight overdrafts, a 50 basis
point (annual rate) charge for uncollateralized daylight overdrafts, and a
biweekly daylight overdraft fee waiver of $150. In addition, the Board
changed other elements of the PSR policy dealing with daylight
overdrafts, including adjusting net debit caps, streamlining max cap
procedures for certain foreign banking organizations (implemented in
March 2009), eliminating the deductible for daylight overdraft fees, and
increasing the penalty daylight overdraft fee for institutions ineligible for
intraday credit to 150 basis points (annual rate).
The Board encourages depository institutions to review documents
explaining the implementation of the revised PSR policy. Versions of
these documents that have been updated with information related to the
revised policy will be available later this year on the Board's website at
http://www.federalreserve.gov/paymentsystems/psr_relpolicies.htm and

on the discount window and PSR website at
http://www.frbdiscountwindow.org
.
The Board's notice is attached.
Federal Register notice HTML | 48 KB PDF

Last Update: September 30, 2010

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