View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Advanced

Search

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.
About
the Fed

News
& Events

Monetary
Policy

Supervision
& Regulation

Payment
Systems

Home > News & Events > Press Releases

Press Release
November 27, 2013

Federal Reserve requests comment on proposed
changes to Policy on Payment System Risk
For immediate release
Share

The Federal Reserve Board on Wednesday requested public comment
on proposed changes to part II of the Federal Reserve Policy on
Payment System Risk (PSR policy) that are designed to enhance the
efficiency of the payment system. The proposed changes are largely
related to the posting rules for automated clearing house (ACH) and
commercial check transactions.
Technology and processing improvements have enabled payment
systems and depository institutions to achieve significant efficiencies
since the Board first established posting rules to measure depository
institutions' intraday Federal Reserve account balances. The proposed
changes to the PSR policy posting rules are intended to align them with
current operations and processing times and to strategically position the
rules for future advancements in the speed of clearing and settlement.
Specifically, the Board proposes to move the posting of ACH debit
transactions processed by the Federal Reserve Banks' FedACH service
overnight to 8:30 a.m. Eastern Time (ET) from 11:00 a.m. ET to align
with the posting of ACH credit transactions. The Board is also proposing
a set of principles for establishing future posting rules for the Reserve
Banks' same-day ACH service.
For commercial check transactions, the Board proposes to move the
posting time for receiving most credits for deposits and debits for

Economic
Research

Data

Consumers
& Communities

presentments to 8:30 a.m. ET, and to establish two other posting times
at 1:00 p.m. ET and 5:30 p.m. ET. The current posting times were
designed for a paper-processing environment and do not begin crediting
or debiting for check transactions deposited and presented until 11:00
a.m. ET.
The Board also is proposing companion amendments to Regulation J
(Collection of Checks and Other Items by Federal Reserve Banks and
Funds Transfers through Fedwire) to permit the Reserve Banks to obtain
settlement from paying banks by as early as 8:30 a.m. ET for checks
that the Reserve Banks present and to permit the Reserve Banks to
require paying banks that receive presentment of checks from the
Reserve Banks to make the proceeds of settlement for those checks
available to the Reserve Banks as soon as 30 minutes after receipt of
the checks.
Comments must be submitted within 60 days from the date of
publication in the Federal Register, which is expected shortly.
For media inquiries, call 202-452-2955.
Federal Register notice for PSR policy HTML | PDF
Federal Register notice for Regulation J HTML | PDF
Board Votes

Federal Reserve Policy on
Payment System Risk; Procedures for
Measuring Daylight Overdrafts
Collection of Checks and Other
Items by Federal Reserve Banks
and Funds Transfer to Fedwire

Last Update: November 27, 2013

BOARD OF GOVERNORS
of the FEDERAL
RESERVE SYSTEM
About the Fed
News & Events
Monetary Policy
Supervision & Regulation
Payment Systems

TOOLS AND
INFORMATION
Contact
Publications
Freedom of Information (FOIA)
Office of Inspector General
Budget & Performance | Audit
No FEAR Act

STAY CONNECTED

Economic Research
Data
Consumers & Communities
Financial Stability

EspaƱol
Website Policies | Privacy
Program
Accessibility

BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551