On September 13, 2018, three new rules were approved by the Nacha voting membership to expand the capabilities of Same Day Automated Clearing House (ACH). One of the rules would create a third new processing window to allow originating depository financial institutions (ODFIs) to submit Same Day ACH files until 4:45 p.m. ET with settlement at 6:00 p.m. ET.
A third same-day ACH window aligns with the Federal Reserve's ongoing objective to support improvements in the safety and efficiency of payment systems in the United States as well as public interest in greater availability of payment services. However, in order for the Federal Reserve Banks to facilitate adoption of this later Same Day ACH processing and settlement window, potential modifications to our other financial services would be required. Specifically:
- Extending the closing of the National Settlement Service (NSS) by one hour to 6:30 p.m. ET
- Extending the cutoff time for Reserve Bank accountholders to initiate transfers on behalf of third parties via the Fedwire ® Funds Service (Fedwire Funds third-party cutoff) by 45 minutes to 6:45 p.m. ET
- Extending the closing of the Fedwire Funds Service by 30 minutes to 7:00 p.m. ET
As is policy with any proposed changes to Federal Reserve financial services that would have significant longer-run effects on the nation’s payment system, the Federal Reserve Board (Board) published a Federal Register Notice (Notice) on May 9, 2019, requesting public comment on these potential modifications from all payments participants, including wire, NSS and ACH, regardless of size.
The Notice seeks feedback on how your institution and your customers would use a later same-day ACH window as well as if you would use expanded hours of NSS and Fedwire Funds for purposes unrelated to the later same-day ACH window. The Notice also seeks feedback on the potential risks, costs and changes to internal processes your institution may face due to the compression of end-of-day processing activities, decreased availability of extensions to operating hours and more frequent delays to the reopening of the Fedwire Funds Service. The Board will use your answers to these questions as they are considering Nacha’s proposed implementation date of March 19, 2021.