The Federal Reserve Board on Thursday requested public comment on proposed amendments to check collection and return rules to reflect the evolution of the nation’s check collection system from one that is largely paper-based to one that is virtually all electronic.
The check collection and return provisions in Regulation CC (Availability of Funds and Collection of Checks) currently apply only to paper checks. The Board is proposing that electronic checks and electronic returned checks that banks exchange by agreement also be subject to these rules unless otherwise agreed by the sending and receiving banks. In addition, the Board is requesting comments on alternative approaches to modify the current expeditious-return and notice of nonpayment requirements to encourage the few remaining banks demanding paper returns to accept electronic returns.
The Board is also proposing a new indemnity for electronic items cleared through the check-collection system that did not originate as paper checks.
Comments on the attached Federal Register notice are due by May 2, 2014.
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