Public comments on proposed revisions to the Federal Reserve’s Regulation J, governing fund transfers, to incorporate rights and obligations of Federal Reserve Banks and participants of the Fed’s new round-the-clock instant payments service are due by Aug. 10, according to a notice published Friday in the Federal Register.
The new service, “FedNow,” is expected to be available in 2023. The Fed has said this service will support instant payments in the U.S. (using concepts similar to existing provisions) 24 hours a day, seven days a week, 365 days a year.
The Fed, in announcing the proposal, said it plans to establish a new subpart C in Reg J that would set up the new rules governing funds transfer using FedNow. It said the current subpart B, which applies to the Fedwire Funds Service, would no longer apply to transfers over FedNow but would be revised to reflect the fact that the reserve banks will be operating a second funds transfer service in addition to Fedwire. The Fed proposal would also make technical changes to subpart A, governing the check processing service.