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Federal Reserve Bank OF DALLAS HELEN E. HOLCOMB DALLAS , TEXAS FIRST VICE PR ES ID ENT AND 75265-5906 C H IE F O P E R A T I N G O F F I C E R April 3, 1998 N otice 98-28 TO : The Chief Operating Officer of each financial institution and others concerned in the Eleventh Federal Reserve District S U B JE C T Revisions to the Federal Reserve System Uniform Cash Access Policy D E T A IL S On March 4, 1998, the Board of Governors approved revisions to the Uniform Cash Access Policy. Since the approval of the original policy in April 1996, a few questions have arisen regarding the application of the policy in an interstate branching environment and the definition of eligible endpoints for free access. The April 1996 policy allowed each depository institution with a banking presence in a Federal Reserve Office territory to designate up to 10 offices to receive free cash access from the local Reserve Bank Office. It may be more economical, however, for some depository institutions to use a nonlocal Reserve Bank Office. For example, some depository institutions serve as correspondent banks for respondent banks in other Federal Reserve territories. There also are depository institutions that are geographically closer to nonlocal Reserve Bank Offices. To address these issues, the Board has revised its cash access policy to clarify the base level of free currency access to all depository institutions in an interstate branching environment. Each depository institution will be able to designate up to 10 endpoints to receive free currency access from each Reserve Bank Office. The fee for access beyond the free service level will be $25 in the Eleventh District. The revised Uniform Cash Access Policy was published on pages 11683-84, Vol. 63, No. 46 of the Federal Register dated March 10, 1998, and becomes effective on May 4, 1998, when the new Uniform Cash Access Policy becomes effective. The revised policy follows. 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) Federal Reserve Cash Service Access Policy 1. Number of Endpoints Eligible for Free Cash Access. Each depository institution can designate up to 10 endpoints to receive free cash access (deposit and order) service from each Reserve Bank Office. A depository institution may not designate an endpoint to receive free cash access from more than one Reserve Bank Office. A designated endpoint may be a branch, head office, a money room and/or an armored carrier used by the depository institution to provide cash services. Individual ATM locations are not eligible for designation as endpoints. If a depository institution uses an armored carrier to service ATMs, the armored carrier may be designated as an endpoint. Beyond the 10 endpoints, Reserve Bank Offices will provide free cash access to endpoints whose volumes exceed a specified threshold. Each Reserve Bank Office will set a “high-bundle threshold,” within the range of 50 to 100 bundles, to accommodate the needs of the geographic area being serviced within that Federal Reserve Office territory. If a depository institution receives free access for more than 10 endpoints, each endpoint must meet the high-bundle threshold. 2. Frequency of Access. Normal free access for each designated endpoint of the depository institution will be one deposit and one order per week. Access more frequent than once per week will be available free of charge to each designated endpoint whose volume exceeds a 20-bundle aggregate threshold and that satisfies the local Reserve Bank Office’s denomination bundle standard. 3. Priced Access. Reserve Bank Offices may choose to accommodate additional access where the demand exists, subject to the constraints of the physical facilities at each Reserve Bank Office. Reserve Banks must price access to cash services beyond the free service described above. 4. Delegation of Authority. The director of the Division of Reserve Bank Operations and Payment Systems, under delegated authority, may (1) approve changes in the base number of free endpoints and the volume thresholds; (2) waive the policy for a limited period if warranted by special circumstances, such as a natural disaster or the introduction of new currency; and (3) interpret the cash access policy. The director may further delegate this authority to interpret the policy to the Federal Reserve Banks’ Financial Services Policy Committee. M O R E IN F O R M A T IO N If you would like a copy of the revised Uniform Cash Access Policy or have any questions concerning it, please call Don Curtis, (214) 922-6808, at the Dallas Office; Dieter Stanchos, (915) 5218265, 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,
