[Federal Register Volume 78, Number 226 (Friday, November 22, 2013)]
[Notices]
[Page 70046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-28028]



[[Page 70046]]

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FEDERAL RESERVE SYSTEM

[Docket No. OP--1471]


Payment System Risk Policy; Daylight Overdraft Posting Rules

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Policy statement.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
has revised part II of the Federal Reserve Policy on Payment System 
Risk (PSR policy) to eliminate certain posting rules to conform with 
changes to the Treasury Tax and Loan (TT&L) program.

DATES: Effective Date: November 22, 2013.

FOR FURTHER INFORMATION CONTACT: Jeffrey D. Walker, Assistant Director 
(202-721-4559) or Michelle D. Olivier, Financial Services Analyst (202-
452-2404), Division of Reserve Bank Operations and Payment Systems. For 
users of Telecommunications Device for the Deaf (TDD) only, please call 
202-263-4869.

SUPPLEMENTARY INFORMATION:

Background

    The Board's PSR policy establishes the procedures, referred to as 
posting rules, for the settlement of debits and credits to 
institutions' Federal Reserve accounts for different payment types.\1\ 
The application of these posting rules determines an institution's 
intraday account balance and whether it has incurred a negative balance 
(daylight overdraft).
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    \1\ The Board's PSR policy is available at 
www.federalreserve.gov/paymentsystems/psr_policy.htm.
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    The Board is removing the posting rules for Electronic Federal Tax 
Payment System (EFTPS) investments from ACH credit and debit 
transactions, which currently post at 8:30 a.m. and 11:00 a.m. eastern 
time, respectively. This change conforms with the U.S. Department of 
Treasury's decision to eliminate retained electronic tax deposits from 
its TT&L program effective January 1, 2012. Beginning in January 2012, 
electronic tax deposits were no longer deposited in the TT&L main 
account balances of retainer and investor depositaries, and all 
retained tax deposits held in these accounts were withdrawn by December 
30, 2011.\2\ Institutions' Federal Reserve account balances are not 
affected by the removal of these posting rules because all EFTPS 
investments from ACH credit and debit transactions have ceased.
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    \2\ Under the TT&L program, a retainer depositary was a TT&L 
depositary that retained some of the electronic tax payments in its 
Treasury Investment Program (TIP) main account balance. An investor 
depositary is a TT&L depositary that accepts direct investments of 
Treasury funds and historically retained some electronic tax 
deposits in its TIP main account balance. Following the withdrawal 
of retained tax deposits in December 2011, the Treasury eliminated 
the designation of Retainer Depositary from the TT&L program.
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Policy on Payment System Risk

    The Federal Reserve Policy on Payment System Risk, section II.A., 
under the heading ``Procedures for Measuring Daylight Overdrafts'' and 
the subheadings ``Post at 8:30 a.m. Eastern time'' and ``Post at 11:00 
a.m. Eastern time,'' is amended to remove the posting rules for EFTPS 
investments from ACH credit and debit transactions as follows:

Procedures for measuring daylight overdrafts \3\
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    \3\ This schedule of posting rules does not affect the overdraft 
restrictions and overdraft-measurement provisions for nonbank banks 
established by the Competitive Equality Banking Act of 1987 and the 
Board's Regulation Y (12 CFR 225.52).
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Post at 8:30 a.m. Eastern time:
     Term deposit maturities and accrued interest
     Government and commercial ACH credit transactions \4\
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    \4\ Institutions that are monitored in real time must fund the 
total amount of their commercial ACH credit originations in order 
for the transactions to be processed. If the Federal Reserve 
receives commercial ACH credit transactions from institutions 
monitored in real time after the scheduled close of the Fedwire 
Funds Service, these transactions will be processed at 12:30 a.m. 
the next business day, or by the ACH deposit deadline, whichever is 
earlier. The Account Balance Monitoring System provides intraday 
account information to the Reserve Banks and institutions and is 
used primarily to give authorized Reserve Bank personnel a mechanism 
to control and monitor account activity for selected institutions. 
For more information on ACH transaction processing, refer to the ACH 
Settlement Day Finality Guide available through the Federal Reserve 
Financial Services Web site at http://www.frbservices.org.
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    + Treasury checks, postal money orders, local Federal Reserve Bank 
checks, and savings bond redemptions in separately sorted deposits; 
these items must be deposited by 12:01 a.m. local time or the local 
deposit deadline, whichever is later
    + Advance-notice Treasury investments
    - Penalty assessments for tax payments from the Treasury Investment 
Program (TIP).\5\

    \5\ The Reserve Banks will identify and notify institutions with 
Treasury-authorized penalties on Thursdays. In the event that 
Thursday is a holiday, the Reserve Banks will identify and notify 
institutions with Treasury-authorized penalties on the following 
business day. Penalties will then be posted on the business day 
following notification.
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Post at 11:00 a.m. Eastern time:
     ACH debit transactions

* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of the Division of Reserve Bank 
Operations and Payment Systems under delegated authority, November 
19, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013-28028 Filed 11-21-13; 8:45 am]
BILLING CODE 6210-01-P