Regulation D: Reserve Requirements of Depository Institutions

Regulation D: Reserve Requirements of Depository Institutions
Subject: Reg D; interest on reserves
Agency: Federal Reserve
Status: Final rule

The Board of Governors of the Federal Reserve System (“Board”) is adopting amendments to Regulation D (Reserve Requirements of Depository Institutions) to eliminate references to an “interest on required reserves” rate and to an “interest on excess reserves” rate and replace them with a reference to a single “interest on reserve balances” rate; and to simplify the formula used to calculate the amount of interest paid on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks, and to make other conforming amendments. The Board requested comment on the amendments and received one comment that addressed issues not raised by the proposed amendments. Accordingly, the Board is adopting the final rule as proposed without change.

FR Doc: 2021-17758
Date proposed: Dec. 22, 2020
Comments due date: March 9, 2021
Effective date:

July 29, 2021

Rule compliance date:
Agency release:

Related Reg Report item(s): Fed wants to combine two Reg D reserve rates into a single under proposal