FEDERAL RESERVE SYSTEM ISSUES PROPOSED RULE: COLLECTION OF CHECKS AND OTHER ITEMS BY FEDERAL RESERVE BANKS AND FUNDS TRANSFERS THROUGH THE FEDWIRE FUNDS SERVICE AND THE FEDNOW SERVICE; REGULATION J

WASHINGTON, April 10 -- Federal Reserve System has issued a proposed rule called: Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through the Fedwire Funds Service and the FedNow Service; Regulation J.

The proposed rule was published in the Federal Register on April 10 by Benjamin W. McDonough, Secretary of the Board.

Summary: The Board is proposing amendments to subpart C of Regulation J (governing the FedNow(R) Service) to permit FedNow participants to use intermediaries, other than Reserve Banks, to send funds transfers through the FedNow Service. The Board believes this change could support private-sector cross-border payment solutions by allowing FedNow participants to leverage an intermediary (for e...