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FEDERAL RESERVE B A *
OF MEW YORK
F Circular No. 9472 Tj
March 24, 1983
FEDERAL RESERVE WIRE TRANSFER
AND NET SETTLEMENT SERVICES
Continuation of Existing Fee Schedules
To All Depository Institutions in the Second
Federal Reserve District, and Others Concerned:
T h e f o llo w in g is q u o te d fr o m th e te x t o f a s ta te m e n t is s u e d b y th e B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e
S y stem :
The Federal Reserve Board has announced that it will continue 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 services plus an adjustment1 for costs that would have been incurred if the services
had been provided by a private business firm. The fees are in accordance with pricing principles established by the Board
and published in December 1980.
The current fee schedules for the wire transfer and net settlement 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.
'The Private Sector Adjustment Factor (PS AF) — 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.
P r i n t e d o n t h e f o l l o w i n g p a g e s i s t h e t e x t o f t h e B o a r d ’s o f f i c i a l n o t i c e i n t h i s m a t t e r , i n c l u d i n g t h e f e e s c h e d u l e s
f o r w ir e tr a n s fe r o f f u n d s a n d n e t s e t t le m e n t s e r v i c e s . T h e s p e c i f i c f e e s c h e d u le s f o r th is B a n k a r e in c o r p o r a t e d in o u r
O p e r a tin g C ir c u la r s N o . 8 ( A p p e n d ix B ) a n d N o . 9 ( A p p e n d ix A ) , c o p ie s o f w h ic h w i l l b e fu r n is h e d u p o n r e q u e s t
d ir e c t e d to th e C ir c u la r s D iv is io n o f th is B a n k (T e l. N o . 2 1 2 - 7 9 1 - 5 2 1 6 ) .
Q u e s t io n s r e g a r d in g w ir e tr a n s fe r a n d n e t s e t tle m e n t s e r v ic e s m a y b e d ir e c t e d to th e f o llo w in g :
A t the H ead Office:
H e n r y F . W ie n e r , A s s is t a n t V ic e P r e s id e n t ( T e l. N o . 2 1 2 - 7 9 1 - 5 0 7 9 )
R o b e r t W . D a b b s , M a n a g e r , E le c tr o n ic P a y m e n ts D e p a r tm e n t (T e l. N o . 2 1 2 - 7 9 1 - 8 4 7 5 )
A t our Buffalo Branch:
R o b e r t J . M c D o n n e ll, O p e r a tio n s O f f ic e r ( T e l. N o . 7 1 6 - 8 4 9 - 5 0 2 2 )
P h ilip G . C o le t t i, C h ie f , A c c o u n t in g D iv is io n ( T e l. N o . 7 1 6 - 8 4 9 - 5 0 6 4 )
A nthony M . S o lo m o n ,
President.
FEDERAL RESERVE SYSTEM
FEE SCHEDULES FOR FEDERAL RESERVE BANK SERVICES
AGENCY?
Board of Governors of the Federal Reserve System,,
ACTION?
Fee
Services ,
Schedules
for Wire
Transfer
of
Funds
and
Net
Settlement
SUMMARY? The Monetary Control Act of 1980 (Title I of Public Law 96-221)
requires that schedules of fees be established for Federal Reserve Bank
services.
Revised fee schedules for the wire transfer of funds and net
settlement services were implemented effective April 29, 1982,
The Board
has now determined to continue the existing fee schedules for these services,
EFFECTIVE DATE?
M arch 17, 1983,
FOR FURTHER INFORMATION CONTACT?
Elliott C„ McEntee, Assistant Director
(202/452-2231) or Florence M. Young, Program Manager (202/452-3955) Federal
Reserve Bank Operations; Gilbert T. Schwartz, Associate General Counsel
(202/452-3625) or Daniel L. Rhoads, Attorney (202/452-3711), Legal Division,
Board of Governors of the Federal Reserve System, Washington, D» C, 20551,
SUPPLEMENTARY INFORMATION?
The Monetary Control Act of 1980 ("Act")
requires that fee schedules be developed for Federal Reserve Bank services
based on pricing principles established by the Board,
The fee schedules for
wire transfer of funds and net settlement services became effective
January 29, 1981, Proposed new fee schedules for wire transfer of funds and
net settlement services were published for public comment on January 7, 1982
(47 FR 2790) „ New fee schedules for these services became effective on
April 29, 1982 (47 FR 13406),
Revenues from the provision of wire transfer of funds and net
settlement services are slightly in excess of the costs, including the
16 percent private sector adjustment factor ("PSAF"), incurred in providing
the services from May 1982 through January 1983 ($42,4 million and $42,2
million, respectively).
Based on 1983 estimates of the volume of funds
transfers (39,7 million transfers), the Board believes that the fee
schedules currently in effect will provide sufficient revenues to cover the
costs of providing the services, including the PSAF,
The Board has
concluded that it is appropriate to retain the current fee schedules for the
wire transfer of funds and net settlement services.
The System is, however,
conducting a comprehensive review of the fee structures of these services.
Should it be determined that significant restructuring of the fee schedules
for these services are desirable, public comment on any such proposed
changes will be solicited.
It is anticipated, however, that any changes to
the current fee structures would not be implemented until 1984,
Accordingly, the fee schedules for the Federal Reserve's wire
transfer of funds and net settlement services will continue in effect as
follows :
Net Settlement
Wire Transfer of Funds
On-Line Transfers
Originator
$0.65
Receiver
$0.65
Settlement Entries
$1.30
Off-Line Surcharges:
Off-Line Surcharges:
Originator
Per Settlement
$5.00
Telephone Advice
$2.25
Telephone Advice
to Receiver
$3.50
oe.
Reserve Banks may charge higher
arrangements that result in higher costs.
fees
for
net
settlement
By order of the Board of Governors of the Federal Reserve System,
March 17, 1983.
(signed) William W„ Wiles
William w. Wiles
Secretary of the Board
[SEAL]
@FedFRASER