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F ederal r e s e r v e Ba n k o f D allas D A L L A S, T E X A S 75222 C i r c u l a r No. 77-67 J u n e 21, 1977 NEW SUBPART B TO REGULATION J TO ALL MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: T h e r e is q uote d below th e text of a p r e s s r e l e a s e is su e d on J u n e 16, 1977, b y th e Board of G o v e r n o r s of th e Federal R e s e r v e System a n n o u n c i n g an am endm en t to Regulation J , effective S e p te m b e r 1, 1977, to c r e a te a new s e c tio n —S u b p a r t B— w hich codifies ru le s a nd p r o c e d u r e s for th e w ir e t r a n s f e r of fu n d s b etw een member banks. T h e Board of G o v e r n o r s of th e Federal R e s e r v e System today a m e n d ed its R egulation J —w hic h c u r r e n t l y d e a ls with c h e c k collection —b y a d d in g a new section c o n c e rn in g th e w ire t r a n s f e r of f u n d s betw een member b a n k s . T h e new p a r t of Regulation J is d e s i g n a t e d S u b p a r t B . It c od ifies ru le s a n d p r o c e d u r e s e v o lv e d by the F ederal R e s e r v e System s in ce it b e g a n w ire t r a n s f e r of f u n d s in 1915, a n d p u ts the r u l e s into r e g u l a t o r y form. T h e e x is tin g R egulation J r u l e s for c h e c k collec tion remain u n c h a n g e d , a n d become S u b p a r t A of the re g u la tio n . T h e w i r e t r a n s f e r s e r v i c e of the F ed eral R e s e r v e utilizes the S y s te m 's c o m pute riz ed communications n e tw o rk linking the Board a nd all F e d e ra l R e s e r v e B anks a n d t h e i r offices, to allow m em ber b a n k s to t r a n s f e r fu n d s alm ost in sta n tly from t h e i r r e s e r v e b a la n ce s to th e r e s e r v e a cc o u n ts of o t h e r member b a n k s , for t h e i r own a c c o u n t, or for a c u s to m e r . T h e most f r e q u e n t u s e of th is s e r v i c e is th e t r a n s f e r of e x c e s s r e s e r v e s of m em ber b a n k s to b a n k s ne eding additional r e s e r v e s , a nd th e t r a n s f e r of fu n d s for c o r p o r a tio n s . T h e u s e of w ir e t r a n s f e r h a s r i s e n d u r i n g the p a s t 10 y e a r s from $6.6 trillio n in 1967 to $35 trillion in 1976. T h e g r e a t l y in c re a s e d u s e of th e S y s te m 's w ir e t r a n s f e r s e r v i c e s led th e Board to conclu de that it should p ut ru le s now c ontain ed in R e s e r v e Bank o p e ra tin g c i r c u l a r s into r e g u la to r y form c la r if y in g the d u tie s a n d re s p o n s ib il itie s of p a r t i c i p a n t s u s in g th e S y s te m 's w i r e t r a n s f e r facilities. Banks and others are encouraged to use the fo llo w in g to ll-fr e e incoming WATS numbers in contacting th is Bank: 1 -8 0 0-492-4403 (intra s ta te ) and 1 -8 0 0 -5 2 7 -4 9 7 0 (in te rs ta te ). For c a lls placed loc a lly , p le a s e use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - S u b p a r t B c o v e r s only w ir e t r a n s f e r s of f u n d s , a n d does not touch on o th e r e le c tr o n ic p a y m e n ts s u c h a s th o s e p r o c e s s e d th r o u g h automated c le a r i n g h o u s e s ( w h e re p a y m e n ts in s tru c tio n s r e c o r d e d on m agnetic t a p e , r a t h e r th a n on c h e c k s , a r e c le a re d ) o r point of sale tra n s a c tio n s (in w hic h e le c tro n ic m eans a r e u s e d for v erification of c h e c k s , or to c h a r g e c u s t o m e r 's b a n k a c c o u n ts for th e ir p u r c h a s e s of good s o r s e r v i c e s ) . T h e w ir e t r a n s f e r r u l e s adopted b y the Board a r e a r e v is io n from p r o p o s e d w ir e t r a n s f e r r u l e s th e Board p u b lis h e d in N ovember 1973 and r e p u b l i s h e d in r e v is e d form in J a n u a r y 1976. T h e ru le s adop ted today reflect Board c o n s id e ra tio n of h u n d r e d s of comments re c eiv e d on its p r o p o s a l s . A t h ir d s u b p a r t to R egulation J is in p r e p a r a t i o n . It would deal with the p r o c e s s i n g of p a y m e n ts r e c o r d e d on m agnetic tape u s in g Federal R e s e r v e fa c ilitie s. T h e Board inc lu de d s u c h d r a f t r u l e s in its J a n u a r y 1976 p ro p o s a l c o n c e rn in g e le c tr o n ic p a y m e n ts . An a p p r o p r i a t e S u b p a r t B to Regulation J , s u ita b le for in s e r tio n in y o u r Regulations B in d e r , will b e f o r w a r d e d to you in the n e a r f u t u r e . If you h a v e a ny q u e s ti o n s r e g a r d i n g th is m a tte r, p le a se c o ntact Allan Y. Neale a t th e Dallas office. E x t . 6334, or th e A ccounting D e partm ent a t o u r El Paso, Houston, o r San Antonio B r a n c h . S in c e r e ly y o u r s , R o b ert H . Boykin F ir s t Vice P r e s i d e n t
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