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Advanced Search About the Fed News & Events Monetary Policy Supervision & Regulation Payment Systems Economic Research Data Consumers & Communities Board of Governors of the Federal Reserve System The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. 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 Share 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 BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM About the Fed News & Events Monetary Policy Supervision & Regulation Payment Systems Economic Research Data Consumers & Communities Financial Stability TOOLS AND INFORMATION STAY CONNECTED Contact Publications Freedom of Information (FOIA) Office of Inspector General Budget & Performance | Audit No FEAR Act Español Website Policies | Privacy Program Accessibility BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM 20th Street and Constitution Avenue N.W., Washington, DC 20551