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ABA: The American Bankers Association
Regulatory Proposal

Fed: Request for Comments on Potential Federal Reserve Actions to Support Interbank Settlement of Faster Payments

Published Proposal: November 14, 2018 Comments Due: December 13, 2018 Disposition: Filed

ABA Comments & Analysis

Summary of the Request for Comments

The Federal Reserve issued a Request for Comment on whether they should consider creating a new, faster settlement infrastructure to support real time payments in the United States. This effort can be traced back to the Fed's 2013 Payment System Improvement-Public Consultation Paper and more recently to the recommendations made by the Faster Payments Task Force Final Report in 2017. Comments are due on December 14, 2018.

The Fed seeks comment on the benefits of it creating a new Real Time Gross Settlement System (RTGS) that would operate 24/7/365 enabling payments to clear and settle on a real time basis at any time. Another part of the proposal would create a Liquidity Management Tool (LMT) that would help banks manage fund balances in their faster payments accounts to ensure that excess funds don’t build up and that balances are adequate to ensure that all authorized transactions are processed.

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