Federal Reserve seeks comments on proposals to facilitate faster payments
On October 3, the Federal Reserve Board (Board) issued a request for comments on “potential actions the Federal Reserve could take to promote ubiquitous, safe, and efficient faster payments . . . by facilitating real-time interbank settlement of faster payments.” The Board indicated it would consider any alternative approaches to the specified potential actions that will achieve its goals. As previously covered in InfoBytes, the Board’s Faster Payments Task Force issued a report in 2017 making several recommendations, including the development of a round-the-clock settlement service to support faster payments. Among the potential actions that the Board is seeking feedback on is whether the Reserve Banks should consider developing such a 24/7/365 real-time gross settlement service, which would use banks’ balances in accounts at the Reserve Banks to facilitate interbank settlement of faster payments. The Board also seeks comments on the potential use of a liquidity management tool, which would support services for real-time interbank settlements by enabling transfers between Federal Reserve accounts on a 24/7/365 basis.
Comments must be received by December 14.