Proposed Option to Return Unpaid Checks Electronically
To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
The following is from a statement by the Board of Governors of the Federal Reserve System:
The Federal Reserve Board has requested comment on proposed changes to its Regulation CC, Availability of Funds and Collection of Checks, that would provide more flexibility to depository institutions to experiment with methods to return unpaid checks electronically.
Comment is requested by April 30, 1999.
The Board seeks to support development of new payment services and to take steps to remove any federal regulatory impediments to innovation in the payments area where appropriate.
Therefore, comment is requested on options for amending Regulation CC and/or its Commentary to clarify the permissibility of notices in a check truncation environment instead of the return of the actual check.
The Board's proposal, as published in the Federal Register of February 24, is available as a file (pdf - 28kb). Comments should be submitted by April 30, 1999 to the Board, as specified in the notice.