Fed makes official its ‘faster payments’ request for comments (due Dec. 14)

A request for comments on actions to support faster payments through real-time interbank settlements will finally become official Thursday when the notice is published in the Federal Register.

In early October, the Federal Reserve said it was seeking comments by Dec. 14 on two actions it could take to support faster payments: the development of a service for real-time interbank settlement of faster payments 24 hours a day, seven days a week, 365 days a year (24x7x365); and the creation of a liquidity management tool that would enable transfers between Federal Reserve accounts on a 24x7x365 basis to support services for real-time interbank settlement of faster payments, regardless of whether those services are provided by the private sector or the Federal Reserve Banks.

However, the notice for comments was not published in the Federal Register – that is, until Wednesday, when the Fed filed the official notice for publication.

The Fed notes that faster payment services offer convenience (for example, allowing on-the-spot payments using mobile phone applications) as well as flexibility in money management (since funds can be sent and received at any time, any day).

Potential Federal Reserve Actions to Support Interbank Settlement of Faster Payments