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Federal Reserve Bank of Dallas HELEN E. HOLCOMB DALLAS, TE XAS FIRST VICE PRESIDENT AND CHIEF OPERATING OFFICER 752 65-59 06 January 2, 1998 Notice 98-02 TO: The Chief Operating Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT Federal Reserve System Uniform Cash Access Policy DETAILS On April 24, 1996, the Board of Governors of the Federal Reserve System approved a new Uniform Cash Access Policy that will introduce greater uniformity in the level of access to cash service across all Federal Reserve Districts. At present, there are inconsistencies in cash access levels among Federal Reserve Offices. For example, significant variations exist from one Federal Reserve Office to another in both the frequency of cash access afforded depository institutions (from unrestricted access to limited access based on dollar values and volumes) and the number of endpoints served per depository institution. Greater consistency in Federal Re serve policies and access levels will become increasingly important as more depository institu tions have a presence in multiple Federal Reserve Districts. The new policy was developed within the following framework: (1) the structure of cash services should include a common, base level of free access to achieve greater uniformity in Federal Reserve cash access levels; (2) the base level of free cash access should be consistent with a wholesale role for the Federal Reserve Banks; and (3) Federal Reserve Banks that choose to provide cash services exceeding the base level may do so as a priced access, where demand and need exist. In the Eleventh District, the price for this service will be $25. The new Uniform Cash Access Policy will become effective on May 4, 1998. The important features of the new policy are listed on the following pages. For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Number of Endpoints Eligible for Free Cash Access • Each depository institution with a banking presence in a Federal Reserve Office territory can designate up to 10 endpoints to receive free cash access (deposit and order) from the local Federal Reserve Office. • In addition to the 10 endpoints, free cash access will be provided to large end points where volumes exceed a specified large volume threshold and the local Federal Reserve Office’s denomination bundle standard is satisfied. Each Federal Reserve Office “high-bundle threshold” is 50 bundles. In order for a depository institution to receive free access for more than 10 endpoints, all endpoints should meet the high-bundle threshold. • Depository institutions must include the known large endpoints exceeding the high-bundle threshold in the original 10 designated endpoints to receive free access. Frequency of Access • Normal free access for each designated endpoint of the depository institution will be one deposit and one order per week. • More frequent access than once per week will be available to the 10 designated endpoints free of charge where volumes exceed a 20-bundle aggregate threshold. Priced Access • Federal Reserve Banks may accommodate additional access where the demand exists, subject to the constraints of the physical facilities at each Federal Reserve Office. If Federal Reserve Banks offer additional access to cash services, this access must be priced. • Each Federal Reserve Bank has established its price for additional cash access. The pricing of an additional access will recover the cost of access to the Federal Reserve only and will not include the costs of the central bank functions of the Federal Reserve’s cash services, such as vault storage, processing, and destruction of currency. The new policy does not change the packaging standards for currency orders or deposits, which are defined in Operating Circular 2, Cash Services. Moreover, current rules on cross-shipping will continue under the new cash access policy. The new cash access policy will have provisions to accommodate bank mergers and acquisitions by offering a one-year window for compliance. Federal Reserve Banks have already begun addressing the operational details of implementing this new policy and will be working closely with depository institutions to ensure a smooth transition on May 4, 1998. MORE INFORMATION A detailed description of the new Federal Reserve System policy, Board of Gover nors’ Docket R-0922, can be found on pages 19062-64, Vol. 61, No. 84 of the Federal Register dated April 30, 1996. The policy was originally distributed to all financial institutions in Notice 96-45, dated May 10, 1996. For a copy of the policy via fax, please call the Public Affairs Department at (214) 922-5254 and request Notice 96-45. If you have any questions regarding the new policy, contact Don Curtis, (214) 922-6808, at the Dallas Office; Dieter Stanchos, (915) 521-8265, at the El Paso Office; Adrayll Askew, (713) 652-1609, at the Houston Office; or Mario Garcia, (210) 978-1300, at the San Antonio Office. Sincerely,
@FedFRASER