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F ederal reserve Ba n k DALLAS, TEXAS of Dallas 75222 Circular No. 80-22 February 7, 1980 LARGE DOLLAR VALUE CHECKS TO ALL BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: Attached is a Federal Reserve p ress release dated January 14, 1980 announcing the Federal Reserve Board has decided to change its check col lection rules to speed up collection of large dollar value checks—$250,000 or more—as a means of improving the nation's payments system and reducing the amount of Federal Reserve Float. In this connection, the Board directed the System's Conference of First Vice Presidents to develop, as soon as practicable, procedures under which banks sending checks to the Federal Reserve for collection will sort out all checks $250,000 or more. These large checks will be given special handling by the System to speed up their collection. Checks of this size account for approximately a q u arter of the average daily float. The Board also asked the Federal Reserve Banks to complete a plan for processing of large dollar value checks received by the Federal Reserve so that the necessary information for collection can be electronically tran sferred to banks on which these checks a re draw n, and thereby reduce float by speeding up payment. The Board will consider the plan presented to it, and will request member banks' comments on any electronic check presentment plan that it proposes to adopt. Sincerely yours, Robert H. Boykin First Vice President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE press release For immediate release January 14, 1980 The Federal Reserve Board today announced that it has decided to change its check collection rules to speed up collection of large dollar value checks -- $250,000 or more -- as a means of improving the nation's payments system and of cutting down the amount of Federal Reserve Float. At the same time, and with the same objectives, the Board asked the Federal Reserve Banks to complete development of a plan first suggested by the Board last May for presenting large dollar value checks for collection electronically, instead of initially presenting them by delivery of the paper checks. This could have the added benefit of conserving fuel used in check collection. Federal Reserve float — billion daily, on the average — currently running at approximately $5.5 is the amount that the Federal Reserve has paid to banks that have sent checks received by them to the System for collection, but that has not yet been collected from the banks whose customers wrote the checks. To reduce such float the Board directed the System's Conference of First Vice Presidents to develop, as soon as practicable, proceduresunder which banks sending checks to the Federal Reserve for collection will sort all checks of $250,000 or more. out These large checks will be given special handling by the System to speed up their collection. Checks of this size account for approximately a quarter of average daily float. At the same time, the Board also asked the System's Conference of First Vice Presidents to complete a plan for value checks received by the Federal Reserve the processing of largedollar so that the necessary (OVER) -2 - information for collection can be electronically transferred to banks on which these checks are drawn, and thereby reduce float by speeding up payment. The Board will consider Che plan presented to it, and will request member bank comment on any electronic check presentment plan that it proposes to adopt. # # # # # # # # # # # #
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