The Federal Reserve Board on Monday approved modifications to the Federal Reserve Banks' National Settlement Service (NSS) and Fedwire® Funds Service to support enhancements to the same-day automated clearinghouse (ACH) service. The Board also approved changes intended to reduce the risk that the modified service closings and cutoffs would increase the frequency of delays to the reopening of the Fedwire Funds Service. Finally, the Board approved corresponding changes to the Federal Reserve Policy on Payment System Risk (PSR policy) related to a new posting time for transactions and an increased daylight overdraft fee.
On September 13, 2018, Nacha, the rules and standards body for the ACH network, announced that its voting members had approved amendments to the Nacha Operating Rules & Guidelines to establish a third and later same-day ACH processing and settlement window with a settlement deadline of 4:45 p.m. ET and settlement at 6:00 p.m. ET. A third same-day ACH window aligns with the Federal Reserve's ongoing objective to support improved speed and efficiency of the payment system in the United States as well as public interest in greater availability of payment services. In particular, the later same-day ACH window would allow more institutions to use same-day ACH services during a greater portion of their business day and may promote greater adoption of same-day ACH and availability of the service to originators and end-users.
The amended Nacha rules changes require modifications to the Federal Reserve Banks' payment service closings and cutoffs so that the private-sector ACH operator, The Clearing House Payments Company L.L.C., can settle same-day ACH transactions later in the day via the National Settlement Service. On May 16, 2019, the Board published a Federal Register notice seeking public comment on these modifications to the Federal Reserve Bank's payment services. After analyzing the comments received, the Board has approved the following modifications and enhancements to be implemented in March 2021, which would accommodate Nacha's current effective date of March 19, 2021 for implementing the later same-day ACH window:
A copy of the Board's Federal Register notice can be downloaded here
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