Comments Due to NAFCU: Federal Reserve - Interbank Settlement of Faster Payments
NAFCU would like to highlight the following:
- Credit unions and other depository institutions will be eligible to connect to the FedNow Service to initiate and receive faster payments. The Board expects the service to become available in 2023 or 2024.
- All settlement entries for transactions through the FedNow Service would be final, meaning that settlement cannot be canceled or revoked once a transaction is processed. This is the logical consequence of the Board's desire to realize its policy objective of improving the speed of funds availability. To offset the risk of irrevocable settlement, the service would support values initially limited to $25,000.
- Separately, the Board intends to consider expansion of the operating hours for the Fedwire Funds Service and the National Settlement Service (NSS), up to 24x7x365, to support a wide range of payment activities including liquidity management in private-sector services for faster payments.
Comments due to NAFCU: October 18, 2019
Comments due to the Federal Reserve: November 7, 2019
NAFCU will send comments on behalf of its members to the NCUA by their deadline (October 18, 2019).