Fed Seeking Comment on Changes to Payment System Risk Policy

  • By Andrew Deichler
  • Published: 1/14/2014
Corporates have less than a month left to comment on proposed changes to Part II of the Federal Reserve’s Policy on Payment System Risk (PSR policy).

The proposed changes concern automated clearing house (ACH) and commercial check transactions. The Fed is attempting to align the rules with current operations and processing times, as well as strategically position them for future advancements in the speed of clearing and settlement.

The Fed has proposed moving the posting of ACH debit transactions processed by the FedACH service overnight to 8:30 a.m. Eastern Time (ET) from 11 a.m. ET to align with the posting of ACH credit transactions. It is also proposing a set of principles for establishing future posting rules for the Reserve Banks’ same-day ACH service.

For commercial check transactions, the Fed wants to move the posting time for receiving most credits for deposits and debits for presentments to 8:30 a.m. ET, as well as establish two other posting times of 1:00 p.m. ET and 5:30 p.m. ET. The Fed noted that the current posting times were designed for a paper-processing environment and do not begin crediting or debiting for check transactions deposited and presented until 11:00 a.m. ET.

The Fed is also considering companion amendments to Regulation J (Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire) that would permit reserve banks to obtain settlement from paying banks as early as 8:30 a.m. ET for checks that they present. Reserve banks would also be permitted to require paying banks that receive presentment of checks from reserve banks to make the proceeds of settlement for those checks available to the reserve banks as soon as 30 minutes after the receipt of the checks.

Comments on the proposals are due by February 10, 2014.

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