Circular
Board Will Not Pursue Change to Daylight Overdraft Posting Rules Under Payment System Risk Policy
December 22, 2008
Circular No. 12050

The Federal Reserve Board has announced that it will not pursue at this time its proposal to change the daylight overdraft posting rules under its Payment System Risk (PSR) policy. The proposal would have aligned the posting time for ACH debit transfers with the posting time for ACH credit transfers, which are currently posted at 8:30 a.m. ET on the settlement date.

In response to the proposal, almost all commenters stated that the posting-rule change would place additional costs and liquidity pressures on many institutions at this time and would not necessarily address some of the issues discussed for making the change.

While not pursuing the original proposal at this time, the Board believes that the simultaneous posting of ACH credit and debit transfers at 8:30 a.m. ET would enhance the efficiency of the payment system in the long run.

The Board will monitor changes in the environment as the industry adjusts to the initial implementation of the payment of interest on Federal Reserve account balances and other market and environmental factors and will reconsider the proposed posting-rule change in the future.

See press release for full details.

Press release