[Federal Register Volume 78, Number 226 (Friday, November 22, 2013)]
[Notices]
[Page 70046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-28028]
[[Page 70046]]
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FEDERAL RESERVE SYSTEM
[Docket No. OP--1471]
Payment System Risk Policy; Daylight Overdraft Posting Rules
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Policy statement.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
has revised part II of the Federal Reserve Policy on Payment System
Risk (PSR policy) to eliminate certain posting rules to conform with
changes to the Treasury Tax and Loan (TT&L) program.
DATES: Effective Date: November 22, 2013.
FOR FURTHER INFORMATION CONTACT: Jeffrey D. Walker, Assistant Director
(202-721-4559) or Michelle D. Olivier, Financial Services Analyst (202-
452-2404), Division of Reserve Bank Operations and Payment Systems. For
users of Telecommunications Device for the Deaf (TDD) only, please call
202-263-4869.
SUPPLEMENTARY INFORMATION:
Background
The Board's PSR policy establishes the procedures, referred to as
posting rules, for the settlement of debits and credits to
institutions' Federal Reserve accounts for different payment types.\1\
The application of these posting rules determines an institution's
intraday account balance and whether it has incurred a negative balance
(daylight overdraft).
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\1\ The Board's PSR policy is available at
www.federalreserve.gov/paymentsystems/psr_policy.htm.
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The Board is removing the posting rules for Electronic Federal Tax
Payment System (EFTPS) investments from ACH credit and debit
transactions, which currently post at 8:30 a.m. and 11:00 a.m. eastern
time, respectively. This change conforms with the U.S. Department of
Treasury's decision to eliminate retained electronic tax deposits from
its TT&L program effective January 1, 2012. Beginning in January 2012,
electronic tax deposits were no longer deposited in the TT&L main
account balances of retainer and investor depositaries, and all
retained tax deposits held in these accounts were withdrawn by December
30, 2011.\2\ Institutions' Federal Reserve account balances are not
affected by the removal of these posting rules because all EFTPS
investments from ACH credit and debit transactions have ceased.
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\2\ Under the TT&L program, a retainer depositary was a TT&L
depositary that retained some of the electronic tax payments in its
Treasury Investment Program (TIP) main account balance. An investor
depositary is a TT&L depositary that accepts direct investments of
Treasury funds and historically retained some electronic tax
deposits in its TIP main account balance. Following the withdrawal
of retained tax deposits in December 2011, the Treasury eliminated
the designation of Retainer Depositary from the TT&L program.
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Policy on Payment System Risk
The Federal Reserve Policy on Payment System Risk, section II.A.,
under the heading ``Procedures for Measuring Daylight Overdrafts'' and
the subheadings ``Post at 8:30 a.m. Eastern time'' and ``Post at 11:00
a.m. Eastern time,'' is amended to remove the posting rules for EFTPS
investments from ACH credit and debit transactions as follows:
Procedures for measuring daylight overdrafts \3\
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\3\ This schedule of posting rules does not affect the overdraft
restrictions and overdraft-measurement provisions for nonbank banks
established by the Competitive Equality Banking Act of 1987 and the
Board's Regulation Y (12 CFR 225.52).
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Post at 8:30 a.m. Eastern time:
Term deposit maturities and accrued interest
Government and commercial ACH credit transactions \4\
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\4\ Institutions that are monitored in real time must fund the
total amount of their commercial ACH credit originations in order
for the transactions to be processed. If the Federal Reserve
receives commercial ACH credit transactions from institutions
monitored in real time after the scheduled close of the Fedwire
Funds Service, these transactions will be processed at 12:30 a.m.
the next business day, or by the ACH deposit deadline, whichever is
earlier. The Account Balance Monitoring System provides intraday
account information to the Reserve Banks and institutions and is
used primarily to give authorized Reserve Bank personnel a mechanism
to control and monitor account activity for selected institutions.
For more information on ACH transaction processing, refer to the ACH
Settlement Day Finality Guide available through the Federal Reserve
Financial Services Web site at http://www.frbservices.org.
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+ Treasury checks, postal money orders, local Federal Reserve Bank
checks, and savings bond redemptions in separately sorted deposits;
these items must be deposited by 12:01 a.m. local time or the local
deposit deadline, whichever is later
+ Advance-notice Treasury investments
- Penalty assessments for tax payments from the Treasury Investment
Program (TIP).\5\
\5\ The Reserve Banks will identify and notify institutions with
Treasury-authorized penalties on Thursdays. In the event that
Thursday is a holiday, the Reserve Banks will identify and notify
institutions with Treasury-authorized penalties on the following
business day. Penalties will then be posted on the business day
following notification.
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Post at 11:00 a.m. Eastern time:
ACH debit transactions
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the Director of the Division of Reserve Bank
Operations and Payment Systems under delegated authority, November
19, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013-28028 Filed 11-21-13; 8:45 am]
BILLING CODE 6210-01-P