Fed Proposes Changes to ACH Posting Times and Changes to its Payments System Risk Policy

CUNA
May 22, 2008 | COMMENTS

The Federal Reserve Board (Board) is proposing to change the posting time for commercial and government ACH debit transfers processed by the FedACH service from 11:00 a.m. ET to 8:30 a.m. ET.

The new settlement time would coincide with commercial and government ACH credit transfers and with settlement times of its private-sector competitor.

Approximately 35 corporate credit unions and banker's banks that are not eligible to incur daylight overdrafts would need to make arrangements to hold higher account balances overnight or obtain funding earlier to account for the settlement time change.

The Board is also proposing a new strategy for providing intraday credit to depository institutions in its Payments System Risk (PSR) policy.

Changes to its PSR policy include allowing institutions to pledge collateral voluntarily to secure daylight overdrafts and providing collateralized daylight overdrafts at a zero fee.

Additional changes include raising the fee for uncollateralized daylight overdrafts to 50 basis points and increasing the biweekly fee waiver to $150.

Please submit your comments to CUNA by May 27, 2008. Comments are due to the Fed by June 4, 2008.

Please feel free to email your comments to SVP and Deputy General Counsel Mary Dunn at mdunn@cuna.com or Assistant General Counsel Lilly Thomas at lthomas@cuna.com; or mail letters to Mary or Lilly c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, D.C. 20004. Click here for a copy of the proposed changes to the ACH posting rules. A copy of the proposed changes to the Fed's PSR policy can be accessed here.

> Read the rest of the comment call and questions here at cuna.org