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federal reserve
Ba n k o f Dallas
DALLAS, T E X A S
75222
Circular No. 83-49
March 29, 1983
FEE SCHEDULE FOR WIRE TRANSFER
OF FUNDS AND NET SETTLEMENT SERVICES
TO ALL DEPOSITORY INSTITUTIONS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
On March 17, 1983, the Federal Reserve Board announced th at current
fee schedules for the wire tran sfer of funds and net settlem en t services will
continue without change.
Enclosed is the te x t of the Board's press release and Federal Register
notice regarding the announcement.
Questions concerning this circular may be directed to Robert L.
Whitman, (214) 698-4357 a t the Head Office; William L. Wilson, (915) 544-4730 at
the El Paso Branch; Sammie C. Clay, (713) 659-4433 a t the Houston Branch; or
Thomas C. Cole, (512) 224-2141 a t the San Antonio Branch.
Additional copies of this circular will be furnished upon request to the
Public Affairs Departm ent, Extension 6289.
Sincerely yours,
William H. Wallace
First Vice President
Enclosure
B a n k s a n d o t h e r s ar e e n c o u r a g e d to u s e th e fo llo w in g in c o m in g W A T S n u m b e r s in c o n t a c t in g th is Bank:
1-800-442-7 140 ( in tr a s t a te ) a n d 1-800-527 -920 0 (in te r s ta te ). F o r c a lls p l a c e d lo cally, p le a s e us e 651 plus th e
e x t e n s io n re fe rre d to ab ove.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
FEDERALRESERVEpressreleas€3
For immediate release
March 17, 1983
The Federal Reserve Board today announced that it will con
tinue without change current charges to depository institutions for wire
transfer of funds and net settlement services.
The Federal Reserve is pricing its services to banks and other
depositories in compliance with the Monetary Control Act of 1980.
The Act
requires that the Federal Reserve charge explicitly for its services and
that the charges recover the System's costs of providing the priced ser-
1/
vices plus an adjustment
for costs that would have been incurred if the
services had been provided by a private business firm.
The fees are in ac
cordance with pricing principles established by the Board and published in
December 1980.
The current fee schedules for the wire transfer and net settle
ment services were put into effect April 29, 1982.
The Board has concluded
that it is appropriate to retain these fee schedules as revenues for these
services are covering costs, including the private sector adjustment factor,
and are expected to continue to do so.
Accordingly, the fee schedules for the Federal Reserve's wire
transfer of funds and net settlement services will continue in effect as
follows:
\J
The Private Sector Adjustment Factor (PSAF) -- An allocation of imputed
costs taking into account taxes that would have been paid and the return
on capital that would have been provided had the services been rendered
in the private sector.
(over)
-
2-
Wire Transfer of Funds
Net Settlement
On-Line Transfer:
Originator
$0.65
Receiver
Settlement Entries
$0.65
Off-Line Surcharges:
$1.30
Off-Line Surcharges:
Originator
$3.50
Per Settlement
$5.00
Receiver
$2.25
Telephone Advice
$2.25
Reserve Banks may charge higher fees for net settlement arrangements that result in higher costs.
The Board's notice is attached.
-
Attachment
0-
FEDERAL RESERVE SYSTEM
FEE SCHEDULES FOR FEDERAL RESERVE BANK S E R V IC ES
AGENCY:
Board of Governors of the Federal Reserve System.
ACTION: Fee
Services.
Schedules
for
Wire
Transfer
of
Funds
and
Net
Settlement
S U M M A R Y : The M onetary Control Act of 1980 (Title I of Public Law 96-221)
requires that schedules of fees be es tablished for Feder al Reserve Bank
services.
Revised fee schedules for the wire transfer of funds and net
settlement services were implemented eff ective April 29, 1982.
The Board
has now d et erm in ed to co ntinue the existing fee schedules for these services.
EF F E C TI VE DATE:
March 17, 198 3.
F O R F U RT HER IN FORMATION CONTACT:
Elliott C. McEntee, A ss istant Director
(202/452-2231) or Florence M. Young, Progr am Manager (202/452-3955) Federal
Reserve Bank Operations; Gilbert T. Schwartz, A ss oc iat e General Counsel
(202/452-3625) or Daniel L. Rhoads, Att orn ey (202/452-3711), Legal Division,
Board of Gov ernors of the Federal Reserve System, Washington, D. C.
20551.
SU P P L E M E N T A R Y INFORMATION:
The M o n e t a r y Control Act of 1980
("Act")
requires that fee schedules be developed for Federal Reserve Bank services
based on pricing principles establ is hed by the Board.
The fee schedules for
wire transfer of funds and net settlement services became effective
Januar y 29, 1981.
Proposed new fee schedules for wire transfer of funds and
net settle me nt services were published for public c o mm en t on J a n ua ry 7, 1982
(47 F R 2790) . New fee schedules for these services became effective on
April 29, 1982 (47 FR 13406).
Revenues from the pro vi sio n of wire transfer of funds and net
settleme nt services are sli gh tl y in excess of the costs, including the
16 p e rce nt pri vat e sector adjust men t factor ("PSAF"), incurred in providing
the services from M a y 1982 through Janua ry 1983 ($42.4 m i l l ion and $42.2
million, r e s p e c t i v e l y ) .
Based on 1983 es timates of the volume of funds
transfers
(39.7 m i l li on transfers), the Board be li eve s that the fee
schedules cur ren tl y in effect will provid e s u ff ici en t revenues to cover the
costs of pro vid in g the services, including the PSAF.
The Board has
conc lu ded that it is appro pri at e to retain the curre nt fee schedules for the
wire transfer of funds and net settle me nt services.
The Sy stem is, however,
co nd uct in g a comp re hen si ve re view of the fee struct ure s of these services.
Should it be deter mi ned that sig nificant res tr uct ur ing of the fee schedules
for these services are desirable, p ublic com men t on any such pr oposed
changes will be solicited.
It is anticipated, however, that any changes to
the current fee structures would not be implemented until 1984.
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2-
Accordingly, the fee schedules for the Federal Reserve's wire
transfer of funds and net settlem en t services will c ontinue in effect as
follows s
Wire Transfer of Funds
Net Settlement
On-Line T r a n s f e r :
Originat or
$0.65
Receiver
Settlement Entries
$1.30
$0.65
Of f-Line Surcharges:
Off-Line Surcharges:
Originator
$3.50
Per Settle me nt
$5.00
Receiver
$2.25
Telephone Advice
$2.25
Reserve Banks m a y charg e higher
arra ng eme nt s that result in higher costs.
fees
By order of the Board of Governors of the
Ma rc h 17, 1983.
(signed)
for
net
Federal
settlement
Reserve
William W. Wiles
W i l l i a m W. Wiles
Se cretary of the Board
[SEAL]
System,