September 03, 2014

NAFCU to Fed: Revisit Reg D transaction limits

The Federal Reserve Board should reevaluate account transaction limitations for savings deposits under Regulation D, NAFCU Regulatory Affairs Counsel Angela Meyster said in aletterTuesday to the Fed Board on its 10-year review of current rules.

The Fed is reviewing certain regulations under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA).

With regard to Reg D, Meyster wrote, "NAFCU believes the Board should take this opportunity to revisit the transaction limitation requirements for savings deposits. The [monthly] six-transaction limit imposes a significant burden on both credit union members in attempting to access and manage their deposits and credit unions in monitoring such activity."

Meyster also pointed out that member access to electronic account monitoring makes such limits obsolete and suggested that, if the board does not remove the limit, it raise the limit from six to 12 transactions.

Meyster also commented on several other regulations under review, including: Reg CC rules on the availability of funds and collection of checks; Reg J rules on the collection of checks; and Reg S rules on reimbursement for providing financial records to a government authority.