Fed Seeks Public Comment on Future Ff Reserve Bank Check Services / Fresh Today / CUToday.info

WASHINGTON–The Federal Reserve has published a request for comment, soliciting feedback on potential strategies for the future of the Reserve Banks’ check services, America’s Credit Unions reported.

Responses will be used to assess possible strategies for the future of the Reserve Banks’ check services, including potentially substantial changes that may have longer-term effects on the payments system.

Check services allow a depository institution to send checks to the Reserve Banks for forward collection and choose various options for when and how checks are sent for collection based on deposit deadlines, the level of check sorting done by the depositing institution, and funds availability for checks deposited.

Future strategies could range from “foregoing needed investments to keep operating costs at existing levels, with expected service degradation over time; to significantly simplifying or substantially winding down the services,” according to the notice.

The notice acknowledges the steady decline in check use and the Reserve Banks’ aging check infrastructure, ACU said.

Comments are due March 9. America’s Credit Unions said it will issue a Regulatory Comment soliciting member feedback and will submit its comments informed by this feedback by the deadline.