Full text of Federal Reserve Bank of New York Circulars : 6959. Amendments to Regulations D and J

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FED ER AL RESERVE BANK
O F NEW YORK

Circular N o. 6 9 5 9
June 2 1, 1972

A M E N D M E N T S TO R E G U L A T I O N S D AND J
E f f e c t i v e S e p t e m b e r 21, 1972

T o the C h ie f E x e c u tiv e O ffic e rs o f A ll B an ks
in the S econ d F e d era l R e s e r v e D is tr ic t:

The B o a r d of G o v e r n o r s of the F e d e r a l R e s e r v e S y s t e m
has a d o p t e d c h a n g e s in R e g u l a t i o n D, Rese r v e s of M e m b e r Banks,
and R e g u l a t i o n J, C o l l e c t i o n of Che c k s and O ther Items by F e d e r a l
R e s e r v e Banks, to be e f f e c t i v e S e p t e m b e r 21, 1972.
The B o a r d h^s
a m e n d e d its o r i g i n a l propos als, p u b l i s h e d for c o m m e n t in the
F e d e r a l R e g i s t e r of A p r i l 1, in the light of v a r i o u s c o m m e n t s and
s u g g e s t i o n s s u b m i t t e d to the B o a r d d i r e c t l y or t h r o u g h the F e d e r a l
Re s e r v e Banks, w h i c h hav e hel d m e e t i n g s and d i s c u s s i o n s on the
p r o p o s a l s w i t h b a n k e r s and ot h e r i n t e r e s t e d parties.
W e e x p e c t to
send to y o u t o m o r r o w the full texts of the ch a n g e s in R e g u l a t i o n s D
and J, as w e l l as the text of a r e l a t e d B o a r d statement.
The m o d i f i c a t i o n s in the proposals, as now adopted,
r e f l e c t the B o a r d ' s d e s i r e to m a k e a smooth t r a n s i t i o n to the new
rules.
Su c h m o d i f i c a t i o n s i n clude a c h a n g e fr o m 13 p e r c e n t to
12 p e r c e n t in the r e s e r v e r e q u i r e m e n t on net d e m a n d d e p o s i t s b e t w e e n
$10 m i l l i o n and $100 m i llion, and a p r o v i s i o n for w a i v e r of
penalties, ov e r a p e r i o d of up to 21 m o n t h s for some banks, on
r e s e r v e d e f i c i e n c i e s p r i m a r i l y a t t r i b u t a b l e to the new c heck
c o l l e c t i o n proc e d u r e s .
D u r i n g the n e x t three months, p r i o r to the e f f e c t i v e dat e
of the c h a n g e s in the r e g u lations, r e p r e s e n t a t i v e s of this Bank
w i l l w o r k w i t h y o u to m a k e all n e c e s s a r y p a y m e n t a r r a n g e m e n t s and
to d e v e l o p a s c h e d u l e for w a i v e r of penalties, w h e n applicable.
W e shall also be w o r k i n g w i t h m a n y b a n k s in this D i s t r i c t on the
c r e a t i o n of a d d i t i o n a l r e g i o n a l c h e c k p r o c e s s i n g c e n t e r s in an
e f f o r t to e x p e d i t e the d e v e l o p m e n t of a n a t i o n w i d e n e t w o r k for
fa s t e r and m o r e e f f i c i e n t c h e c k clearings.




A lfred H a y e s,

President.