[Federal Register Volume 90, Number 160 (Thursday, August 21, 2025)]
[Proposed Rules]
[Pages 40767-40778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-16056]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 90, No. 160 / Thursday, August 21, 2025 /
Proposed Rules
[[Page 40767]]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 328
RIN 3064-AG14
FDIC Official Signs, Advertisement of Membership, False
Advertising, Misrepresentation of Insured Status, and Misuse of the
FDIC's Name or Logo
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is seeking
comment on a proposal that would amend signage requirements for insured
depository institutions' (IDIs) digital deposit-taking channels and
automated teller machines (ATMs) and like devices. The proposed changes
are intended to address implementation issues and sources of potential
confusion that have arisen following the adoption of current signage
requirements for these banking channels. The proposal would provide
additional flexibility to IDIs while also enabling consumers to better
understand when they are conducting business with an IDI and when their
funds are protected by the FDIC's deposit insurance coverage.
DATES: Comments must be received by the FDIC no later than October 20,
2025.
ADDRESSES: You may submit comments, identified by RIN 3064-AG14, by any
of the following methods:
FDIC Website: https://www.fdic.gov/federal-register-publications. Follow instructions for submitting comments on the agency
website.
Email: [email protected]. Include RIN 3064-AG14 in the
subject line of the message.
Mail: Jennifer M. Jones, Deputy Executive Secretary,
Attention: Comments--RIN 3064-AG14, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.
Hand Delivery to FDIC: Comments may be hand-delivered to
the guard station at the rear of the 550 17th Street NW building
(located on F Street) on business days between 7 a.m. and 5 p.m.
Public Inspection: Comments received, including any
personal information provided, may be posted without change to https://www.fdic.gov/federal-register-publications. Commenters should submit
only information that the commenter wishes to make available publicly.
The FDIC may review, redact, or refrain from posting all or any portion
of any comment that it may deem to be inappropriate for publication,
such as irrelevant or obscene material. The FDIC may post only a single
representative example of identical or substantially identical
comments, and in such cases will generally identify the number of
identical or substantially identical comments represented by the posted
example. All comments that have been redacted, as well as those that
have not been posted, that contain comments on the merits of the
proposed rule will be retained in the public comment file and will be
considered as required under all applicable laws. All comments may be
accessible under the Freedom of Information Act.
Follow the search instructions on https://www.regulations.gov to
view public comments.
This proposal, all comments received, and a summary of not more
than 100 words of the proposed rule pursuant to the Providing
Accountability Through Transparency Act of 2023 are available at
https://www.fdic.gov/resources/regulations/federal-register-publications/.
FOR FURTHER INFORMATION CONTACT: Division of Depositor and Consumer
Protection: Monika Jansen, Senior Policy Analyst, (202) 898-6781,
[email protected]; Edward Hof, Senior Policy Analyst, (202) 898-7213,
[email protected]; Meron Wondwosen, Assistant Director, (202) 898-3544,
[email protected]; Legal Division: Chantal Hernandez, Counsel, (202)
898-6678, [email protected]; Nathan Raygor, Senior Attorney, (202)
898-8688, [email protected]; Shane Bogusz, Attorney, (571) 366-0212,
[email protected].
SUPPLEMENTARY INFORMATION:
I. Policy Objectives
On December 20, 2023, the FDIC adopted a final rule that, among
other things, amended the FDIC's sign and advertisement of membership
regulations under subpart A of 12 CFR part 328 (the 2023 Final
Rule).\1\ In that final rule, the FDIC stated that it was seeking to
bring the certainty and confidence historically provided by the FDIC
official sign found at banks' teller windows to other banking channels
used by consumers in the modern banking landscape.\2\ Under the 2023
Final Rule, the FDIC established sign requirements across all banking
channels (physical premises, digital deposit-taking channels, and ATMs
and like devices). The FDIC further stated that it intended for the new
signage requirements to better align with how depositors conduct
business with IDIs today and to help inform consumers when their funds
are FDIC-insured.\3\ The 2023 Final Rule requirements intended to more
clearly distinguish deposit products (in which depositors' funds are
insured) from non-deposit products and to help consumers distinguish
IDIs from non-banks in the digital age.\4\ Moreover, as explained in
the 2023 Final Rule, the FDIC intended to permit flexibility for IDIs
and other firms in the marketing of their products and services.\5\
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\1\ 89 FR 3504 (Jan. 18, 2024).
\2\ Id.
\3\ Id.
\4\ 89 FR 3504.
\5\ 89 FR 3504.
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Under this proposed rulemaking, the FDIC seeks to minimize
identified implementation issues, reduce burden, and address potential
consumer confusion with respect to signage requirements for digital
deposit-taking channels and ATMs and like devices. In particular, the
FDIC proposes to amend signage requirements in 12 CFR 328.4 and 328.5.
The FDIC is not proposing substantive amendments to other provisions
under 12 CFR part 328.
II. Background
A. Statutory Authority and FDIC Regulations
The FDIC maintains stability and public confidence in the nation's
financial system by, among other things, insuring the deposits of all
IDIs. Section 18(a) of the Federal Deposit Insurance
[[Page 40768]]
Act (FDI Act) \6\ governs IDI sign and advertising statement
requirements and grants the FDIC authority to prescribe regulations
with respect to these requirements. The regulations implementing
signage and advertisement requirements are contained in Sec. Sec.
328.0 through 328.8 of subpart A of 12 CFR part 328 (subpart A).
Subpart A applies to IDIs, including insured branches of foreign banks.
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\6\ 12 U.S.C. 1828(a)(1).
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In addition, section 18(a)(4) of the FDI Act \7\ prohibits any
person from misusing the name or logo of the FDIC or from engaging in
false advertising or making knowing misrepresentations about deposit
insurance. Regulations governing these prohibitions are contained in
Sec. Sec. 328.100 through 328.109 of subpart B of 12 CFR part 328.
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\7\ 12 U.S.C. 1828(a)(4).
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B. Previous Rulemaking
In the 2023 Final Rule, the FDIC updated signage requirements to
apply across all banking channels to account for how depositors conduct
business with IDIs in the modern banking landscape; namely the
increasing use of digital channels and new services provided by ATMs
and like devices. In particular, in the 2023 Final Rule, the FDIC
established an FDIC official digital sign.\8\ The FDIC's rules require
IDIs to display that sign on certain pages of its digital deposit-
taking channels and ATMs and like devices.\9\ Moreover, the FDIC
requires IDIs to display non-deposit signage to differentiate insured
deposits from non-deposit products on digital deposit-taking channels
and ATMs and like devices.\10\ As stated in the 2023 Final Rule, the
FDIC intended for IDIs' use of the FDIC official digital sign and non-
deposit signage to help consumers better understand when consumers are
conducting business with an IDI and when their funds are FDIC-insured.
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\8\ 12 CFR 328.5(b).
\9\ See 12 CFR 328.4(c) and (e) and 328.5(d).
\10\ See 12 CFR 328.4(d) and 328.5(g).
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The amendments made in the 2023 Final Rule took effect on April 1,
2024; however, full compliance with the amendments was not required
until January 1, 2025, to provide additional opportunity for IDIs to
establish processes and systems and make technological updates
necessary to implement the new regulatory requirements.\11\ Based upon
feedback from IDIs and other industry participants, in October 2024,
the FDIC delayed the compliance date for the subpart A amendments to
May 1, 2025, to provide additional time for IDIs to put in place
processes and systems and make technological updates.\12\
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\11\ See 89 FR 3504, 3507 (Jan. 18, 2024).
\12\ See 89 FR 84261 (Oct. 22, 2024). The compliance date for
amendments to subpart B remained January 1, 2025.
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In March 2025, the FDIC delayed the compliance date for 12 CFR
328.5, which governs signage requirements for digital deposit-taking
channels, and the compliance date for 12 CFR 328.4, which includes
analogous requirements related to an IDI's ATMs and like devices, from
May 1, 2025 to March 1, 2026.\13\ The delay was intended to allow the
FDIC to propose changes to the regulation for public comment to address
implementation concerns and potential sources of confusion regarding
the requirements.\14\
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\13\ See id. Compliance with all other subpart A amendments was
generally required by May 1, 2025.
\14\ See id.
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C. Need for Rulemaking
Since the 2023 Final Rule was adopted, the FDIC has observed that,
in practice, certain requirements may raise operational challenges for
IDIs or result in consumer confusion. Following the adoption of the
2023 Final Rule, FDIC staff met with various stakeholders to discuss
questions and concerns relating to the rule's requirements.
In particular, stakeholders identified challenges with implementing
the display of the FDIC official digital and non-deposit signage on
required pages and screens for digital deposit-taking channels, ATMs,
and like devices. Some stakeholders stated that the signage
requirements were ``overly prescriptive'' and ``technical,'' especially
as to the specifications of the FDIC official digital sign.
Additionally, some stakeholders stated that IDIs would benefit from
additional flexibility in displaying the FDIC official digital sign on
pages and screens where space is limited, particularly with respect to
mobile banking.
Stakeholders also explained the difficulty in providing appropriate
disclosures for customers moving to third-party websites or making
certain transfers of funds between different accounts. Moreover, some
stakeholders raised concerns that the signage requirements may cause
consumers confusion when insured products are listed or advertised on
the same page as non-deposit products, potentially leaving consumers
unsure which products are FDIC-insured deposit products. These
implementation challenges informed the FDIC's decision to twice delay
the compliance date for the amended signage requirements for digital
deposit-taking channels and ATMs and like devices. As part of the March
2025 delay of the compliance date, the FDIC stated its intention to
propose changes for public comment.\15\
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\15\ See 90 FR 11659 (Mar. 11, 2025).
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To address concerns and challenges raised by stakeholders, the FDIC
is proposing to clarify and provide greater flexibility with respect to
the requirements regarding the (1) FDIC official digital sign design;
(2) display of signage on digital deposit-taking channels; and (3)
display of signage on ATMs and like devices. The FDIC believes the
proposed amendments would advance the FDIC's policy objectives of
helping consumers to better understand when they are doing business
with an IDI and when their funds are FDIC-insured. The proposed
amendments are described in greater detail below.
III. Description of the Proposed Rule
A. FDIC Official Digital Sign Design Requirements
Section 328.5(b) sets forth requirements for the design of the FDIC
official digital sign. Those requirements include specific text, color,
font, and size requirements, such as specific hexadecimal color codes
and wordmark sizes. The FDIC's rules provide some flexibility for cases
in which the required colors would be illegible due to the color of the
background on a digital deposit-taking channel. In such cases, the
FDIC's rules allow for the digital sign to be displayed in white
(hexadecimal color code #FFFFFF).
Since the publication of the 2023 Final Rule, the FDIC has received
questions about the design of the FDIC official digital sign. Some
industry stakeholders asked whether there is any flexibility with
respect to the color codes and font sizes, stating that the
prescriptive design standards may become obsolete and that even slight
variations from the specifications may result in noncompliance. Other
questioners noted implementation challenges if a digital deposit-taking
channel was not designed to use the specified color and size standards
or if a digital deposit-taking channel offered multiple viewing
settings, such as ``dark mode.'' As stated in the preamble to the 2023
Final Rule, the FDIC continues to believe that an easily recognizable,
consistent FDIC official digital sign conveys the certainty and
confidence historically provided by the physical FDIC official sign at
banks' teller windows.\16\ The FDIC also, however,
[[Page 40769]]
appreciates that design standards requiring specific color and font
codes can present challenges for IDIs and may be overly prescriptive
with respect to the policy goal.
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\16\ 89 FR 3511 (Jan. 18, 2024).
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Under the proposal, IDIs would have additional flexibility with
respect to the color, font, and size that IDIs may use when displaying
the FDIC official digital sign. While the proposed rule would still
require the FDIC official digital sign to be displayed in either a
combination of navy blue and black text or all-white text, the proposed
rule would no longer prescribe specific hexadecimal color codes. The
proposed rule would also no longer require a specific pixel size for
the text in the FDIC official digital sign. In addition, the proposed
rule would provide additional flexibility by allowing the font used for
the FDIC official digital sign to be Source Sans Pro Web or a similar
font. Finally, the proposed rule would eliminate font size requirements
for the text of the FDIC official digital sign. Although the proposed
rule would no longer provide for a specific font size, the FDIC
official digital sign would have to be displayed in a clear and
conspicuous manner, which would ensure its legibility. The FDIC notes
that 12 CFR part 328 does not supersede or alter any other requirements
that may apply to IDIs, including any requirements to comply with
digital accessibility rules.
The proposed rule would also expressly permit IDIs to ``wrap'' the
text of the FDIC official digital sign to address space constraints. In
response to questions about whether any of the text in the FDIC
official digital sign may be wrapped to better fit certain channels,
such as mobile device applications, the FDIC provided guidance in
``Questions and Answers Related to the FDIC's Part 328 Final Rule''
\17\ (Q&As). The Q&As stated that, in general, the FDIC official
digital sign should be presented as shown in the 2023 Final Rule, but
if the image does not fit a particular device or screen, the text of
the FDIC official digital sign may be wrapped to fit the relevant
screen.\18\ The proposed rule would adopt the standard discussed in the
Q&As regarding text wrapping.
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\17\ ``Questions and Answers Related to the FDIC's Part 328
Final Rule'' (July 15, 2024), II.A.6., available at: https://www.fdic.gov/deposit-insurance/questions-and-answers-related-fdics-part-328-final-rule.
\18\ See id.
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B. Signage Requirements for IDIs' Digital Deposit-Taking Channels
1. FDIC Official Digital Sign Requirements for Digital Deposit-Taking
Channels
The FDIC is also proposing to more appropriately focus the display
of the FDIC official digital sign on digital deposit-taking channel
pages and screens that are most relevant for consumers. Section
328.5(d) requires IDIs to display the FDIC official digital sign on an
IDI's digital deposit-taking channel's initial page or homepage of the
website or application; landing or login pages; and pages where the
customer may transact with deposits. Following the adoption of the 2023
Final Rule, IDIs and other industry stakeholders raised questions and
concerns with implementing these requirements, particularly with
respect to ``landing pages'' and ``pages where the customer may
transact with deposits.''
a. Proposed Removal of Landing Page Requirement
The FDIC received feedback that ``landing page'' is not a term
commonly used by IDIs with respect to IDIs' banking websites and
applications, and industry stakeholders requested further clarification
on the FDIC's intent. The FDIC recognizes that the term ``landing
page'' is duplicative of ``login page,'' which is a term that is
commonly understood and covers the same intended types of pages and
screens. For this reason, the FDIC is proposing to remove the
requirement to display the FDIC official digital sign on an IDI's
``landing page'' while retaining the requirement for IDIs to display
the FDIC official digital sign on the ``login page'' of an IDI's
digital deposit-taking channel.
b. Proposed Change to Pages Where the Customer May Transact With
Deposits
With respect to the requirement to display the FDIC official
digital sign on ``pages where the customer may transact with
deposits,'' IDIs and other stakeholders requested clarification on
which pages and screens are included for purposes of this requirement.
Several IDIs informed the FDIC of technical challenges in implementing
the requirements on ``transact with deposits'' pages. Such difficulties
may arise when customizing transaction screens to provide for the
display of the FDIC official digital sign in instances where the page
(e.g., a transfer page) lists a customer's non-deposit account (e.g.,
investment account) as well as the customer's deposit account (e.g.,
checking account). Some IDIs and other stakeholders also raised
concerns that customers may mistakenly believe that the FDIC official
digital sign implies that FDIC insurance protects against erroneous or
fraudulent transfers or that non-deposit products are FDIC-insured when
the FDIC official sign is required on pages that also include non-
deposit products.
The FDIC appreciates the technical challenges and potential for
consumer confusion and is proposing to remove the requirement to
display the FDIC official digital sign on ``pages where the customer
may transact with deposits.'' The FDIC is proposing instead to require
IDIs to display the FDIC official digital sign on the IDI's digital
deposit-taking channels' page or screen where the consumer initiates a
deposit account opening. The FDIC believes that displaying the FDIC
official digital sign at the deposit account opening stage would
provide a consumer with information regarding the insurability of funds
held in the account so that the consumer may make an informed decision
when opening a deposit account.
2. Static Non-Deposit Signage Requirements for Digital Deposit-Taking
Channels
The proposed rule would narrow the required digital deposit-taking
channel pages and screens on which IDIs must display non-deposit
signage. Section 328.5(g)(1) requires IDIs to clearly, continuously,
and conspicuously display non-deposit signage ``on each page relating
to non-deposit products'' that indicates that non-deposit products: are
not insured by the FDIC; are not deposits; and may lose value.
Some IDIs and other industry stakeholders raised questions and
concerns with respect to this requirement. For example, some IDIs
requested clarification as to the meaning of a page ``relating'' to
non-deposit products and whether this term includes pages and screens
with incidental references to non-deposit products, such as an IDI's
homepage, or if references to non-deposit products in navigation menus
or tabs would trigger the requirement. The FDIC also recognizes that
display of the non-deposit sign may confuse consumers as to which
products are FDIC-insured and not insured, particularly when both the
FDIC official digital sign and non-deposit sign are displayed on the
same page with references to both FDIC-insured deposit products and
non-deposit products.
To address the questions and concerns raised, the proposed rule
[[Page 40770]]
would more appropriately target display of the non-deposit sign. In
particular, the proposed rule would require the display of non-deposit
signage only on pages and screens that are primarily dedicated to one
or more non-deposit products. The proposal would require non-deposit
signage on pages and screens that offer or provide substantive
information on one or more non-deposit products. For example, an IDI
would be required to display non-deposit signage on the IDI's website
page providing detailed information on annuities or pages where a
consumer could purchase a non-deposit product. With this proposed
change, IDIs would not be required to display non-deposit signage on
pages or screens with incidental references to non-deposit products,
such as the homepage or on the navigation menu that references non-
deposit product pages.
3. Clear, Continuous, and Conspicuous Display
The proposed rule would continue to require IDIs to clearly,
continuously, and conspicuously display the FDIC official digital sign
and non-deposit signage on relevant pages. Following adoption of the
2023 Final Rule, many IDIs and other stakeholders requested
clarification on where signage could be placed to meet the clear,
continuous, and conspicuous standard. The proposed rule would provide
IDIs with flexibility in meeting this standard given the unique designs
of IDIs' websites and applications, as well as space constraints for
smaller screens. The FDIC also recognizes additional clarification
regarding this standard could be helpful for IDIs in implementing 12
CFR part 328's requirements. Accordingly, the proposed rule would
provide a non-exhaustive list of examples on various placements of the
FDIC official digital sign and non-deposit signage that would meet the
clear, continuous, and conspicuous standard for IDIs' digital deposit-
taking channels.
4. One-Time Notification for Bank Customers Related to Third-Party Non-
Deposit Products
The FDIC is proposing to amend the requirement that an IDI provide
a one-time notification to customers accessing third-party non-deposit
products through an IDI's digital deposit-taking channel. Section
328.5(g)(2) requires IDIs to display a one-time notification when a
bank customer logged into an IDI's digital deposit-taking channel
attempts to access non-deposit products through a hyperlink (or similar
web-linking feature) to a non-bank third-party platform. The FDIC's
rules require the one-time notification to clearly and conspicuously
indicate that the non-deposit products: are not insured by the FDIC;
are not deposits; and may lose value. The FDIC's rules further require
that a bank customer must dismiss the one-time notification before
initially accessing the third-party's platform.
The FDIC received feedback from IDIs and other industry
participants concerning the one-time notification requirement. IDIs
cited operational challenges in implementing the one-time notification
requirement, as well as concerns that the notification would be
disruptive and would degrade the user experience for IDI customers.
The FDIC proposes to retain the requirement of a one-time
notification when moving from an IDI to a non-bank and from an FDIC-
insured deposit area to a non-deposit area. However, the proposal would
provide IDIs additional flexibility with respect to the one-time
notification requirement. Under the proposed rule, IDIs would be
required to provide a notification that must be either dismissed by an
act of the customer or dismissed automatically after the customer has
been provided a reasonable opportunity to read the notification's
content. For purposes of this requirement, a reasonable opportunity
would constitute a period of time no less than three seconds.
Consistent with historical interpretations,\19\ the FDIC would view
affiliated entities as ``third parties'' for purposes of the one-time
notification requirement. As such, IDIs would be required to display
the one-time notification when customers access affiliated third-party
non-deposit products through an IDI's digital deposit-taking channel.
The proposal would also make non-substantive organizational changes to
the regulatory text of the one-time notification requirement.
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\19\ See, e.g., 88 FR 37920 (June 9, 2023); FIL-9-94 (Feb. 17,
1994).
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C. Signage Requirements for ATMs and Like Devices
1. FDIC Official Digital Sign Requirements for ATMs and Like Devices
The FDIC is proposing to amend 12 CFR 328.4(c) to provide IDIs with
additional flexibility in displaying the FDIC official digital sign on
ATMs and like devices. Under 12 CFR 328.4(c), for ATMs that receive
deposits and offer access to non-deposit products, IDIs are required to
display the FDIC official digital sign clearly, continuously, and
conspicuously on an ATM or like device's ``home page or screen and on
each transaction page or screen relating to deposits.''
A number of IDIs and other stakeholders contacted the FDIC with
questions regarding the implementation of this requirement,
particularly in relation to the requirement to display the digital sign
on ``each transaction page or screen relating to deposits.'' IDIs also
expressed concern that consumers could be confused if the FDIC official
digital sign were displayed on pages that contained information about
both insured and uninsured accounts or products. IDIs further
highlighted that, as with the transaction page requirement for digital
deposit-taking channels, displaying the FDIC official digital sign on
transfer pages may be challenging or unfeasible if the IDI operating
the ATM cannot determine the insured status of funds sent to recipient
institution accounts.
The proposal aims to simplify compliance for IDIs and mitigate
potential consumer confusion by requiring the display of the FDIC
official digital sign only on the initial screen of an IDI's ATM or
like device. For purposes of this proposed requirement, an ATM's
``initial screen'' is the screen that is displayed before an IDI's
customer inserts a debit card or other credentials to access the device
(sometimes referred to as a ``welcome screen''). This simplified
requirement would continue to help ensure that consumers are informed
when consumers are doing business with an IDI, while providing greater
certainty for IDIs as to which ATM pages or screens would require
display of the FDIC official digital sign.
2. Limited Exception for Certain ATMs and Like Devices To Display
Physical FDIC Official Sign
The FDIC is proposing to expand an alternative to the FDIC official
digital sign requirement for certain ATMs and like devices. Section
328.4 provides a limited exception to the FDIC official digital sign
requirement for ATMs and like devices that do not offer non-deposit
products and were placed into service prior to January 1, 2025,
permitting such devices to display either the FDIC official digital
sign or the physical FDIC official sign.\20\
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\20\ See 12 CFR 328.4(b) and (e).
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Since issuing the 2023 Final Rule, the FDIC has received a range of
questions from IDIs concerning the availability of the physical FDIC
official sign exception for existing ATMs and like devices. The FDIC
understands that there are costs associated with updating ATMs and like
[[Page 40771]]
devices that have already been placed into service to comply with new
signage requirements. The FDIC also believes that the physical FDIC
official sign provides sufficient assurance and clarity to consumers
regarding the insured status of deposits at (1) existing ATMs and like
devices and (2) ATMs and like devices that do not offer non-deposit
products. To that end, the FDIC is proposing to expand the physical
sign exception to a wider range of ATMs and like devices, giving IDIs
greater flexibility to display either the physical FDIC official sign
or the FDIC official digital sign on those devices. Specifically, under
the proposal, this physical signage exception would be available to (1)
all ATMs and like devices placed into service prior to January 1, 2027,
and (2) all ATMs and like devices, regardless of when placed into
service, that do not allow customers to transact with non-deposit
products.
3. Degraded or Defaced Physical FDIC Official Signs
Section 328.4(f) provides that a degraded or defaced physical FDIC
official sign on ATMs and like devices would not be considered to be
displayed in a clear and conspicuous manner, as its display would be of
little or no benefit to consumers. The FDIC proposes removing this
provision. The FDIC believes this provision is not needed because an
institution is required to clearly and conspicuously display the sign,
and if the sign is not clear to consumers, the institution would not be
displaying it clearly.
4. Non-Deposit Signage
Section 328.4(d) requires ATMs that receive deposits for an IDI and
offer access to non-deposit products to clearly, continuously, and
conspicuously display non-deposit signage ``on each transaction page or
screen relating to non-deposit products.'' Such non-deposit signage
must indicate that non-deposit products are not insured by the FDIC;
are not deposits; and may lose value. The FDIC has received feedback
that the 2023 Final Rule's non-deposit signage requirements for ATMs
and like devices are overly broad and repetitive, as IDIs are required
to display the non-deposit sign on each page within a single non-
deposit transaction. In recognition of this and other considerations,
the proposed rule would modify the non-deposit signage requirements for
ATMs and like devices in two respects.
First, under the proposal, a narrower subset of ATMs and like
devices would be subject to the non-deposit signage requirements. While
the 2023 Final Rule's non-deposit signage requirements apply to an ATM
or like device if it receives deposits for an IDI and offers access to
non-deposit products, the proposal would apply to ATMs or like devices
that receive deposits for an IDI and permit IDI customers to transact
with one or more non-deposit products. This change would remove ATMs
and like devices from the scope of the non-deposit signage requirements
if, for example, they merely permit customers to view account balances
for non-deposit products. Moreover, an IDI would only be required to
display non-deposit signage for the IDI's own customers. The FDIC
acknowledges the technical limitations IDIs face in verifying
information for customers of other financial institutions using the
IDI's ATMs and like devices (referred to as ``non-customers''),
including whether the non-customer is accessing FDIC-insured deposit
accounts or non-deposit products. The proposed rule would not require
IDIs to display non-deposit signage for pages and screens viewed by
non-customers.
Second, the proposed rule would require the display of non-deposit
signage on fewer pages and screens, reflecting a more focused approach.
Although the 2023 Final Rule required non-deposit signage to be
displayed on each transaction page or screen relating to non-deposit
products, the proposal would require non-deposit signage to appear only
on the initial transaction page or screen for a non-deposit product.
This change would simplify IDIs' compliance with the non-deposit
signage requirement while ensuring that signage continues to be
displayed where it is most relevant to consumers: the first screen
displayed upon beginning a transaction with a non-deposit product.
These changes would focus the non-deposit signage requirements on
devices and screens that provide the disclosures to consumers at the
most appropriate place and time.
D. Compliance Date
The FDIC acknowledges that some IDIs are currently displaying
signage on their digital deposit-taking channels and ATMs and like
devices consistent with the 2023 Final Rule, while other IDIs are not
displaying signage as permitted under the delayed compliance date
period. The FDIC recognizes that all IDIs will need time to update
systems and processes to implement changes in compliance with the
proposed amendments. Accordingly, the FDIC proposes the compliance date
of January 1, 2027. If the FDIC adopts a final rule amending the
existing regulation, the FDIC would also review any associated Q&As
published on the FDIC website as warranted based on the specific
revisions adopted.
E. Technical Amendment
The FDIC also proposes to make a technical amendment to 12 CFR part
328. Section 328.5(c) currently provides for a ``digital symbol'' that
is defined as the portion of the FDIC official digital sign
``consisting of `FDIC' and the one line of smaller type to the right of
`FDIC'.'' While this provision defining the digital symbol is located
in subpart A of 12 CFR part 328, 12 CFR part 328 discusses the use of
the digital symbol only in subpart B, which addresses false
advertising, misrepresentation of insured status, and misuse of the
FDIC's name or logo. Given that the digital symbol concept applies
specifically to the context of subpart B, the proposed rule would
implement a technical amendment to transfer the text providing for, and
defining, the digital symbol to 12 CFR 328.101 of subpart B. This non-
substantive change would promote readability by ensuring that the
definition is physically located in the relevant subpart of the
regulation.
IV. Expected Effects
The proposed changes to 12 CFR part 328.4 and 328.5 are intended to
clarify the requirements for the display of the FDIC official digital
sign and non-deposit signage, as well as clarify when such signage is
required for ATMs and similar devices. These requirements apply to all
IDIs. To the extent that some IDIs have not already implemented changes
to their digital operations to comply with 12 CFR part 328.4 and 328.5,
the proposed rule would reduce the number of hours spent to update
their systems. The proposed rule would also reduce the number of hours
spent by all IDIs to maintain ongoing compliance with 12 CFR part 328.4
and 328.5. Given this decrease in burden, the proposed changes are not
expected to result in any substantive direct costs to impacted IDIs.
Instead, they are expected to generate cost savings in the form of
reduced administrative effort and resource allocation. In addition, the
proposed rule would benefit IDIs' customers, who would have a more
streamlined and clutter-free browsing experience.
A. Cost Savings: Implementation
If adopted, the proposed rule could benefit IDIs by reducing
implementation costs such as labor costs to make changes to an IDI's IT
systems, contracting costs to make changes to in-house or third-party
IT systems, costs to upgrade hardware for ATMs and similar
[[Page 40772]]
devices, and labor costs to make changes to internal compliance
policies and procedures. The cost savings that would result from the
proposed rule vary by IDI depending on the size and complexity of their
digital deposit-taking channels, the number of ATMs and like devices,
and the degree to which IDIs rely on third-party service providers to
provide these channels, ATMs or like devices. The FDIC does not have
the information necessary to quantify all cost savings associated with
the proposed rule. However, the FDIC believes that these benefits will
be material for certain IDIs because stakeholders have, as previously
discussed, identified related challenges with adopting certain
provisions of 12 CFR part 328.
Although the FDIC cannot quantify all cost savings associated with
the proposed rule, it has quantified certain estimated cost savings for
IDIs associated with the changes to recordkeeping, reporting, and
disclosure requirements for digital signage and non-deposit signage
obligations. The FDIC recognizes that the cost estimates in the 2023
final rule may have understated the actual costs, and thus the
estimated cost savings in this proposal may likewise understate the
actual cost savings, but the FDIC is using the best estimates it has
available.
As of this date, 4,471 IDIs are subject to 12 CFR part 328. As
previously discussed, the proposed rule would pose two principal
effects for affected IDIs. First, the proposal would reduce the number
of digital screens or pages on which the FDIC official digital sign
must appear. Second, the proposal would narrow certain non-deposit
signage requirements. Based on these changes, the FDIC estimates an
average reduction of 19 hours per IDI for implementation-related
recordkeeping, reporting and disclosure activities only.\21\ At an
estimated average hourly labor cost of $118,\22\ the proposed rule
would result in cost savings of $2,242 per IDI, on average, in the
implementation year prior to the compliance deadline for the proposed
rule. Across 4,471 IDIs, the estimated effect is approximately $10
million in implementation cost savings.\23\
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\21\ The 19 hours represent a 32 percent time savings from the
60 hours of implementation burden estimated in the 2023 Final Rule.
\22\ To estimate the average hourly labor cost, the FDIC assumes
that 17.5, 17.5, and 65 percent of the labor used to comply with the
2023 Final Rule would be by Managers/Executives (at $159.03 per
hour), Compliance Officers (at $80.68 per hour), and IT
professionals (at $116.37 per hour), respectively. The FDIC uses the
75th percentile hourly wages reported by the Bureau of Labor
Statistics (BLS) National Industry-Specific Occupational Employment
and Wage Estimates (OEWS) for the relevant occupations in the
Depository Credit Intermediation sector as of May 2024. These wages
were increased by 53 and 5 percent to account for non-wage
compensation and wage inflation between May 2024 and March 2025.
\23\ 19 hours x $118 per hour x 4,471 institutions =
$10,023,982.
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Although the 2023 Final Rule is already effective, compliance with
12 CFR 328.4 and 328.5 has been postponed until March 1, 2026.\24\
However, some IDIs may have already taken steps to implement the 2023
Final Rule in anticipation of its original compliance deadline of
January 1, 2025, or its revised compliance deadline of March 1, 2026.
As a result, these IDIs may not realize full cost savings from the
proposed changes. In some cases, they may even incur voluntary costs to
reverse or modify signage or systems that are no longer required under
the proposal. It is also possible that such IDIs will choose to
maintain compliance with the broader requirements in the 2023 Final
Rule and therefore avoid any reversal costs. For purposes of this
analysis, the FDIC assumes that all IDIs would experience cost savings
generated by the proposed rule and estimate the average cost savings
for an IDI that has not yet taken steps to comply with current
requirements under 12 CFR part 328.4 and 328.5.
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\24\ See 90 FR 11659, published on March 11, 2025.
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While the quantified implementation cost savings may be relatively
small, the unquantified implementation cost savings are likely to be
material for some IDIs.
B. Cost Savings: Ongoing Compliance
In addition to reducing implementation burden in the period leading
to the proposed amended compliance date, the proposed rule would
generate ongoing compliance cost savings in subsequent years. IDIs
typically incur recurring compliance costs to maintain, review, and
update their signage and related systems in accordance with regulatory
requirements. Further, ongoing compliance with FDIC signage
requirements can be a factor in costs for third-party service
agreements, hardware replacement, as well as validation and testing of
service delivery channels. The FDIC does not have the information
necessary to quantify all ongoing cost savings associated with the
proposed rule. However, the proposed rule would reduce the scope of
these ongoing activities and thereby generate associated cost savings
for IDIs. As noted above, these savings will vary across IDIs, based on
the size and complexity of their operations.
For purposes of this analysis, the FDIC has quantified ongoing cost
savings for IDIs associated with the changes to recordkeeping,
reporting, and disclosure requirements for digital signage and non-
deposit signage obligations only. The FDIC categorizes IDIs by asset
size as a proxy for the complexity of digital operations, consistent
with the methodology used in the 2023 Final Rule: IDIs with less than
$10 billion in assets and those with $10 billion or more. According to
the latest Call Report data, there are 4,311 IDIs in the smaller IDI
group and 160 in the larger.\25\ The FDIC estimates that the proposed
rule would reduce ongoing recordkeeping, reporting, and disclosure
compliance labor hours for smaller IDIs by an average time savings of 3
hours and 10 minutes. For larger IDIs, the estimated time savings is 6
hours and 20 minutes annually.\26\
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\25\ Call Reports for the quarter ending March 31, 2025.
\26\ The estimated time savings of 3 hours and 10 minutes for
smaller IDIs and 6 hours and 20 minutes for larger IDIs are
approximately 32 percent of the corresponding burdens estimated in
the 2023 Final Rule and are proportionally in line with the
estimated time savings for the implementation cost.
---------------------------------------------------------------------------
Using the same estimated average hourly labor cost of $118 as
above, the estimated ongoing annual cost savings are approximately $374
per small IDI and $747 per large IDI, on average, for a total annual
cost savings of approximately $1.6 million for smaller IDIs and
approximately $120 thousand for larger IDIs. This yields a total
estimated ongoing annual cost savings associated with changes to
recordkeeping, reporting, and disclosure requirements of approximately
$1.7 million across all FDIC-insured depository institutions.
C. Intangible Benefits and Costs
The proposed changes may also result in indirect or intangible
effects that are more difficult to quantify.
In addition, the proposed rule would benefit consumers by improving
their experience with IDIs' digital channels. For example, the proposed
changes would allow IDIs to tailor digital signage placement to better
meet the needs of the customer, resulting in more targeted and less
duplicative disclosures. The elimination of the notification dismissal
requirement would reduce interruptions to the browsing experience. The
removal of the requirement to display the FDIC official digital sign on
``pages where the customer may transact with deposits'' would eliminate
consumer confusion about which products are
[[Page 40773]]
FDIC-insured when a page shows both deposit and non-deposit products.
Overall, these proposed changes would lead to a more streamlined and
less cluttered customer experience. The FDIC does not have the data
available to quantify these effects but believes the proposed rule
would provide substantial benefits to consumers of IDI's digital
channels.
At the same time, the proposed changes may introduce some
intangible costs. For example, reducing signage requirements could
result in less visible or less consistent disclosure of deposit
insurance coverage. IDIs that have already implemented changes to their
digital operations to comply with 12 CFR part 328 may incur some costs
to modify their systems in response to the proposed rule. More
flexibility in how different institutions implement the requirements
could potentially lead to greater variability in customer experience
across the industry. The FDIC believes these effects will be minimal;
under the proposed rule, 12 CFR part 328 would still require IDIs
digital operations to provide clarity to consumers about the extent to
which or the manner in which products are insured by the FDIC.
Finally, the timing of compliance may also influence intangible
effects. Given the proposed extension of the compliance date until
January 1, 2027, some institutions would benefit from increased
flexibility in integrating the new requirements into ongoing system
updates or signage cycles. However, a longer transition period may also
lead to temporary inconsistencies in signage across institutions, which
could affect customer experience to a limited extent.
The FDIC invites comments on all aspects of the supporting
information provided in this Expected Effects section. The FDIC is
particularly interested in comments on any significant benefits or
costs that the agency has not identified.
V. Alternatives Considered
The FDIC has considered several alternatives to the proposed rule
that could meet the objectives of this rulemaking, including proposals
suggested by commenters in response to the 2023 Final Rule. For the
reasons described, the FDIC views the proposed rule as the most
appropriate and effective means of achieving its policy objectives with
respect to 12 CFR part 328.
The FDIC considered not promulgating any regulatory action to amend
12 CFR part 328. However, as previously discussed, the FDIC has
identified challenges with, and potential improvements for, the FDIC's
sign and advertisement regulations under subpart A of 12 CFR part 328.
As discussed in section IV, Expected Effects, of this document, the
proposed rule has clear, quantifiable cost savings, among other
benefits, over this no-action alternative with minimal costs to IDIs
and their customers.
The FDIC also considered eliminating the regulations in 12 CFR
328.4 and 328.5 to remove digital signage requirements entirely.
However, as described in the 2023 Final Rule, the FDIC believes there
are benefits to updates to 12 CFR part 328 to address potential
uncertainties that could dilute or undermine the confidence that
underpins banks and our nation's broader financial system. The proposed
rule would advance the 2023 Final Rule's objective to ensure that
consumers, businesses, and other entities better understand when their
funds are protected by FDIC deposit insurance, while increasing the
flexibility for IDIs in the marketing of their products and services.
The FDIC invites comments on alternatives to the proposed rule.
VI. Regulatory Analysis
A. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires an agency,
in connection with a proposed rule, to prepare and make available for
public comment an initial regulatory flexibility analysis that
describes the impact of the proposed rule on small entities.\27\
However, an initial regulatory flexibility analysis is not required if
the agency certifies that the proposed rule will not, if promulgated,
have a significant economic impact on a substantial number of small
entities. The Small Business Administration (SBA) has defined ``small
entities'' to include banking organizations with total assets of less
than or equal to $850 million.\28\ Generally, the FDIC considers a
significant economic impact to be a quantified effect in excess of 5
percent of total annual salaries and benefits or 2.5 percent of total
noninterest expenses. The FDIC believes that effects in excess of one
or more of these thresholds typically represent significant economic
impacts for FDIC-supervised institutions. For the reasons described
below, the FDIC certifies that the proposed rule will not have a
significant economic impact on a substantial number of small entities.
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\27\ 5 U.S.C. 601 et seq.
\28\ The SBA defines a small banking organization as having $850
million or less in assets, where an organization's ``assets are
determined by averaging the assets reported on its four quarterly
financial statements for the preceding year.'' See 13 CFR 121.201
(as amended by 87 FR 69118, effective December 19, 2022). In its
determination, the ``SBA counts the receipts, employees, or other
measure of size of the concern whose size is at issue and all of its
domestic and foreign affiliates.'' See 13 CFR 121.103. Following
these regulations, the FDIC uses an insured depository institution's
affiliated and acquired assets, averaged over the preceding four
quarters, to determine whether the insured depository institution is
``small'' for the purposes of RFA.
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As described in section IV, Expected Effects, of this document, the
proposed rule would affect all institutions whose deposits are insured
by the FDIC. According to recent Call Reports, there are 4,471 such
IDIs.\29\ Of these, approximately 3,130 would be considered small
entities for the purposes of the RFA (small entity IDIs).\30\
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\29\ FDIC Call Reports, March 31, 2025.
\30\ Id.
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As a result of the proposed rule, IDIs with less than $10 billion
in assets \31\ would spend an estimated 19 fewer hours, on average, to
update their digital operations in the first year in order to comply
with the recordkeeping, reporting, and disclosure provision of the 2023
Final Rule. At average labor costs of $118 per hour,\32\ the estimated
first-year cost savings would be approximately $2,242 per IDI, or
approximately $7 million for all small entity IDIs--less than a tenth
of a percent of annual salaries and benefits for these 3,130 entities
in aggregate. At the individual IDI level, the estimated first-year
cost savings would not exceed even one percent of the total annual
salaries and benefits for any small entity IDI. For subsequent years,
the estimated costs savings are even smaller: an IDI with less than $10
billion in assets is expected to spend 3 hours and 10 minutes less
(equivalent to $374) per year,\33\ on average, to comply with the
recordkeeping, reporting, and disclosure provisions within part 328 as
a result of the proposed rule. Thus, the proposed
[[Page 40774]]
rule is unlikely to significantly impact any small entity IDI.
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\31\ All 3,130 small entity IDIs have less than $10 billion in
assets.
\32\ To estimate the average cost of compensation per hour, the
FDIC assumes that approximately 17.5, 17.5, and 65 percent of the
labor used to comply with the 2023 Final Rule would be by Managers/
Executives (at $159.03 per hour), Compliance Officers (at $80.68 per
hour), and IT professionals (at $116.37 per hour), respectively. The
FDIC uses the 75th percentile hourly wages reported by the Bureau of
Labor Statistics (BLS) National Industry-Specific Occupational
Employment and Wage Estimates (OEWS) for the relevant occupations in
the Depository Credit Intermediation sector as of May 2024. These
wages were increased by approximately 53 and 5 percent to account
for non-wage compensation and wage inflation between May 2024 and
March 2025.
\33\ $374 per year = 3:10 hours x $118 per hour.
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The proposed rule would also provide benefits other than the cost
savings described above, including greater flexibility in signage
design and placement, improved customer experience, and reduced staff
time allocated to maintaining signage compliance across multiple
channels and devices. As noted in section IV, Expected Effects, of this
document, the FDIC is unable to quantify these effects. However, the
FDIC believes these effects, while potentially substantive for certain
IDIs, are likely to be minimal in the aggregate.
Given the expected effects of the proposed rule described above,
the FDIC certifies that the proposed rule would not have a significant
economic impact on a substantial number of small entities.
The FDIC invites comments on all aspects of the supporting
information provided in this RFA section. The FDIC is particularly
interested in comments on any significant effects on small entities
that the agency has not identified.
B. Paperwork Reduction Act
Certain provisions of the proposed rule contain ``collections of
information'' within the meaning of the Paperwork Reduction Act (PRA)
of 1995.\34\ In accordance with the requirements of the PRA, the FDIC
may not conduct or sponsor, and the respondent is not required to
respond to, an information collection unless it displays a currently
valid Office of Management and Budget (OMB) control number. The
information collections contained in the proposed rule have been
submitted to OMB for review and approval by the FDIC under section
3507(d) of the PRA \35\ and 5 CFR 1320.11 of OMB's implementing
regulations.\36\ The FDIC is proposing to extend for three years, with
revision, these information collections.
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\34\ 44 U.S.C. 3501 et seq.
\35\ 44 U.S.C. 3507(d).
\36\ 5 CFR 1320.
---------------------------------------------------------------------------
Title of information Collection: FDIC's Official Sign and
Advertising Requirements, False Advertising, Misrepresentation of
Insured Status, and Misuse of the FDIC's Name or Logo.
OMB Number: 3064-0219.
Frequency of Response: Periodic--see table below.
Affected Public: Businesses or other for-profit.
Respondents: Any FDIC-insured depository institution and persons
that provide deposit-related services to insured depository
institutions or offer insured depository institution's deposit-related
products or services to other parties.
Current Actions: The proposed rule would revise the currently
approved information collection to streamline the requirements to
display the FDIC official digital sign and the display of non-deposit
signage to certain pages.
First, the proposal would reduce the number of digital screens or
pages on which the FDIC official digital sign must appear. Under the
2023 Final Rule, IDIs are typically required to display the FDIC
official sign across an open-ended number of locations, most likely at
least six. The proposed rule would eliminate the requirement to post
the official digital sign on pages where a consumer may transact with
deposits, which could represent multiple pages (transfer pages, remote
deposit capture pages, and account opening pages, for example).
Overall, the proposed rule would reduce this requirement to four key
locations on digital channels and ATMs and like devices: (a) on digital
channels, the requirement would drop from an open-ended number of pages
(initial or homepage, landing or login, and pages where a consumer may
transact with deposits) to just three (initial or homepage, login page,
and the screen used to initiate a deposit account opening); and (b) for
ATMs and like devices, the requirement would be reduced from at least
two or more screens (home and each deposit-related transaction screen)
to only the initial screen.
Second, the proposal would narrow the non-deposit signage
requirements: (a) for digital channels, non-deposit signage would no
longer be required on all pages related to non-deposit products;
instead, non-deposit signage would only be required on pages primarily
dedicated to one or more non-deposit products, thereby reducing the
number of applicable pages; and (b) for ATMs and like devices, the
proposal would both limit the types of devices that require non-deposit
signage (only those enabling transactions with non-deposit products)
and reduce the number of screens where signage must appear (from all
related screens to only the initial non-deposit product screen).
These proposed changes are reflected in information collections 3-5
on the table below. Based on available data, the estimated annual
burden associated with the information collection would decrease.
Summary of Estimated Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
Type of burden Average number Average time
Information collection (frequency of Number of of responses per response Annual burden
(obligation to respond) response) respondents per respondent (HH:MM) (hours)
----------------------------------------------------------------------------------------------------------------
1. Signs within Institution Third-Party 4,496 7 1:00 31,472
Premises--Banks <$10B, 12 CFR Disclosure
328.3 (Mandatory). (Annual).
2. Signs within Institution Third-Party 158 279 2:00 88,164
Premises--Banks >=$10B, 12 Disclosure
CFR 328.3 (Mandatory). (Annual).
3. Signage for ATMs and Third-Party 4,471 0.333 41:00 61,049
Digital Deposit-taking Disclosure
Channels--Implementation, 12 (Annual).
CFR 328.4 and 328.5
(Mandatory).
4. Signage for ATMs and Third-Party 4,311 0.667 6.50 19,646
Digital Deposit-taking Disclosure
Channels--Banks <$10B-- (Annual).
Ongoing, 12 CFR 328.4 and
328.5 (Mandatory).
5. Signage for ATMs and Third-Party 160 0.667 13.40 1,462
Digital Deposit-taking Disclosure
Channels--Banks >=$10B-- (Annual).
Ongoing, 12 CFR 328.4 and
328.5 (Mandatory).
6. Policies and Procedures-- Recordkeeping 1,551 1 80:00 124,080
Implementation, 12 CFR 328.8 (Annual).
(Mandatory).
7. Policies and Procedures-- Recordkeeping 3,103 1 12:00 37,236
Ongoing, 12 CFR 328.8 (Annual).
(Mandatory).
[[Page 40775]]
8. Insured Depository Third-Party 500 1 2:30 1,250
Institution Relationships-- Disclosure
Implementation 12 CFR (Annual).
328.102(b)(5) (Mandatory).
9. Insured Depository Third-Party 1,000 1 1:00 1,000
Institution Relationships-- Disclosure
Ongoing 12 CFR 328.102(b)(5) (Annual).
(Mandatory).
10. Request for Consent to Use Reporting....... 1 1 2:00 2
Non-English Language (On occasion)...
Advertising Statement--12 CFR
328.6(f) (Required to Obtain
or Retain a Benefit).
---------------------------------------------------------------
Total Annual Burden ................ .............. .............. .............. 365,361
(Hours).
----------------------------------------------------------------------------------------------------------------
Source: FDIC.
Note: The annual burden estimate for a given collection is calculated in two steps. First, the total number of
annual responses is calculated as the whole number closest to the product of the annual number of respondents
and the annual number of responses per respondent. Then, the total number of annual responses is multiplied by
the time per response and rounded to the nearest hour to obtain the estimated annual burden for that
collection. This rounding ensures the annual burden hours in the table are consistent with the values recorded
in the OMB's regulatory tracking system.
This proposal would result in a decrease in the average time per response for lines 3-5 in the table. The
remaining ICs are presented for renewal without change.
Comments are invited on:
(a) Whether the collection of information is necessary for the
proper performance of the FDIC's functions, including whether the
information has practical utility;
(b) The accuracy of the estimate of the burden of the information
collection, including the validity of the methodology and assumptions
used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected; and
(d) Ways to minimize the burden of the information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology.
All comments will become a matter of public record. Comments on
aspects of this document that may affect reporting, recordkeeping, or
disclosure requirements and burden estimates should be sent to the
address listed in the ADDRESSES section of this document. Written
comments and recommendations for this information collection also
should be sent within 60 days of publication of this document to
www.reginfo.gov/public/do/PRAMain. Find this particular information
collection by selecting ``Currently under 60-day Review--Open for
Public Comments'' or by using the search function.
C. Plain Language
Section 722 of the Gramm-Leach Bliley Act \37\ requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The FDIC invites your comments on how
to make the proposed rule easier to understand. For example:
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\37\ Public Law 106-102, section 722, 113 Stat. 1338, 1471
(1999), 12 U.S.C. 4809.
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Has the FDIC organized the material to suit your needs? If
not, how could the proposed rule be more clearly stated?
Are the requirements in the proposed rule clearly stated?
If not, how could the proposed rule be more clearly stated?
Does the proposed rule contain language or jargon that is
not clear? If so, which language requires clarification?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the proposed rule easier to
understand? If so, what changes to the format would make the proposed
rule easier to understand?
What else could the FDIC do to make the proposed rule
easier to understand?
D. Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act of 1994 (RCDRIA),\38\ in determining the
effective date and administrative compliance requirements for new
regulations that impose additional reporting, disclosure, or other
requirements on IDIs, each Federal banking agency must consider,
consistent with principles of safety and soundness and the public
interest, any administrative burdens that such regulations would place
on affected depository institutions, including small depository
institutions, and customers of depository institutions, as well as the
benefits of such regulations. In addition, section 302(b) of the RCDRIA
requires new regulations and amendments to regulations that impose
additional reporting, disclosures, or other new requirements on IDIs
generally to take effect on the first day of a calendar quarter that
begins on or after the date on which the regulations are published in
final form. The FDIC invites comments that further will inform its
consideration of the RCDRIA.\39\
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\38\ 12 U.S.C. 4802(a).
\39\ 12 U.S.C. 4802(b).
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E. Executive Order 12866 and 14192
Executive Order 12866, as amended, provides that the Office of
Information and Regulatory Affairs (OIRA) will review all ``significant
regulatory actions'' as defined therein. OIRA has determined that this
proposal is not a ``significant regulatory action'' for purposes of
Executive Order 12866. The proposal, if finalized as proposed, is not
expected to be an Executive Order 14192 regulatory action.
VII. Request for Comment
The FDIC invites comment on all aspects of this proposed
rulemaking. In particular, the FDIC seeks feedback on the scope of the
proposed rule and its requirements, and responses to the following
specific questions:
FDIC Official Digital Sign Design
(1) Do the proposed rule's requirements regarding the color, size,
and font of the FDIC official digital sign's text provide a reasonable
amount of flexibility while ensuring that the official digital sign is
easily
[[Page 40776]]
recognizable, consistent, and conveys the certainty and confidence
historically provided by the physical FDIC official sign at banks'
teller windows? If not, please identify any additional or alternative
requirements to the design of the official digital sign that would
provide further flexibility while meeting the recognizability,
consistency, and confidence of the policy objectives.
(2) Are there substantive changes to the text of the FDIC official
digital sign, such as including the phrase, ``Deposits are FDIC-
insured,'' that would provide additional clarity? Should IDIs be
permitted to amend or add to the text of the FDIC official digital
sign? If so, please provide details regarding the level of flexibility
or specific text suggestions. Are there downsides to changes to the
text or additional flexibility?
(3) Should the proposed rule include a minimum size font for the
text of the FDIC official digital sign? If so, would this work for
mobile phone applications with a small amount of space? If not, are
there other ways to ensure that the FDIC official digital sign is
readable, legible, and clear?
(4) Do the proposed rule's requirements regarding the design of the
FDIC official digital sign present technical challenges? If so, please
provide specific examples and potential alternatives that would support
the FDIC's stated policy objectives while mitigating compliance and
other costs.
(5) Should the proposed rule clarify what ``similar fonts'' to
Source Sans Pro Web are permissible for the display of the FDIC
official digital sign? If so, please suggest ways of providing such
clarification.
Signage Requirements for Digital Deposit-Taking Channels
(6) Are there additional ways the FDIC could clarify which pages
and screens of an IDI's digital deposit-taking channel would be
required to display the FDIC official digital sign?
(7) Does the proposed rule sufficiently address the stated policy
objective of addressing risk of confusion where consumers interact with
deposits and non-deposit products through the same digital channels?
Are there any additional or alternative requirements that would draw a
clear distinction between deposits and non-deposit products on digital
channels?
(8) Do the proposed rule's requirements regarding the display of
the FDIC official digital sign present technical challenges that are
not sufficiently mitigated by the flexibility provided? If so, are
there ways to address those challenges while still displaying the FDIC
official digital sign in a recognizable and consistent manner that
mitigates consumer confusion?
(9) The proposed rule would require the display of non-deposit
signage only on pages and screens that are ``primarily dedicated'' to
one or more non-deposit products. Is the meaning of ``primarily
dedicated'' sufficiently clear as to which pages and screens require
the non-deposit signage?
(10) The proposed rule would require that the FDIC official digital
sign and non-deposit signage on certain digital deposit-taking channels
be displayed clearly, continuously, and conspicuously. How can the FDIC
provide additional guidance on whether a particular instance of the
FDIC official digital sign or non-deposit signage on a given page is
displayed ``clearly, continuously, and conspicuously''?
(11) Does the proposed rule's minimum three-second duration for the
display of the one-time notification before automatic dismissal provide
consumers with sufficient opportunity to read and understand the
content of the notification? Is there an alternative duration that
would set a more appropriate minimum standard for the display of the
one-time notification? Are there other alternative approaches besides a
minimum duration that would achieve the stated policy objectives?
(12) Should the one-time notification requirement apply when the
third-party is an affiliate of an IDI? If so, why, and if not, why not?
Sign Requirements for ATMs and Like Devices
(13) Is the proposed rule sufficiently clear as to which pages and
screens on ATMs and like devices are required to display the FDIC
official digital sign? If not, how could the proposed rule be clearer?
(14) The proposed rule would require non-deposit signage to be
displayed on an ATM or like device only on the initial transaction page
or initial transaction screen for a non-deposit product. Is it
sufficiently clear which page or screen would be the ``initial
transaction page or initial transaction screen'' for purposes of this
requirement? If not, how could the requirement be clearer?
(15) For ATMs and like devices that display the physical FDIC
official sign, are minimum standards for the condition, clarity, or
conspicuousness of the sign necessary to ensure consumers are able to
view the sign's content? If so, what should those standards be?
(16) What risks of consumer confusion or uncertainty, if any, are
presented by having different signage requirements for ATMs and like
devices based on the date on which they are placed into service?
(17) Do the proposed rule's requirements that the FDIC official
digital sign be displayed on an ATM's initial screen and that non-
deposit signage be displayed on the initial non-deposit product
transaction page provide enough clarity about whether a product is
insured while providing reasonable flexibility to IDIs?
Compliance Date
(18) For IDIs that have complied with the 2023 Final Rule, is the
proposed January 1, 2027 compliance date sufficient to allow IDIs to
revise systems and processes to ensure digital deposit-taking channels,
ATMs, and like devices comply with the proposed requirements, if
implemented? What expenses would IDIs incur in making such revisions?
Innovation
(19) Do the proposed amendments pose potential challenges to the
ability of IDI to innovate with respect to how consumers engage with an
IDI and its products and services?
List of Subjects in 12 CFR Part 328
Advertising, Bank deposit insurance, Savings associations, Signs
and symbols.
Authority and Issuance
For the reasons stated in the preamble, the Federal Deposit
Insurance Corporation proposes to amend part 328 of title 12 of the
Code of Federal Regulations as follows:
PART 328--FDIC OFFICIAL SIGNS, ADVERTISEMENT OF MEMBERSHIP, FALSE
ADVERTISING, MISREPRESENTATION OF INSURED STATUS, AND MISUSE OF THE
FDIC'S LOGO
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1. The authority citation for part 328 continues to read as follows:
Authority: 12 U.S.C. 1818, 1819 (Tenth), 1820(c), 1828(a).
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2. Revise Sec. 328.4 to read as follows:
Sec. 328.4 Signs for automated teller machines (ATMs) and like
devices.
(a) Scope. This section governs signage for insured depository
institutions' ATMs and other remote electronic facilities (referred to
as ``like devices'') that receive deposits. For purpose of this
section, ATMs and like devices are not digital deposit-taking channels.
(b) Display of FDIC official digital sign. Except as provided in
paragraph
[[Page 40777]]
(c) of this section, an insured depository institution must clearly,
continuously, and conspicuously display the FDIC official digital sign
specified in Sec. 328.5(b) on the initial screen of the insured
depository institution's ATMs and like devices.
(c) Limited exception for certain ATMs to display physical official
sign. The physical official sign as described in Sec. 328.2 may be
displayed in lieu of the FDIC official digital sign as described in
Sec. 328.5(b), for:
(1) ATMs and like devices placed into service after January 1,
2027, that do not permit an insured depository institution's customer
to transact with a non-deposit product; and
(2) ATMs and like devices placed into service on or before January
1, 2027.
(d) Non-deposit signage. An insured depository institution's ATM
and like device that both receive deposits and permit a customer to
transact with one or more non-deposit products must clearly,
continuously, and conspicuously display signage indicating that the
non-deposit products: are not insured by the FDIC; are not deposits;
and may lose value. This signage must be displayed on the initial
transaction page or initial transaction screen relating to a non-
deposit product.
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3. Revise Sec. 328.5 to read as follows:
Sec. 328.5 Signs for digital deposit-taking channels.
(a) Scope. This section governs signage for digital deposit-taking
channels, including insured depository institutions' websites and web-
based or mobile applications, that offer the ability to make deposits
electronically and provide access to deposits at insured depository
institutions. This section does not apply to ATMs and like devices as
described in Sec. 328.4.
(b) Design. In general, the ``FDIC'' in the FDIC official digital
sign shall be displayed in bold, navy blue or black, and the ``FDIC-
Insured--Backed by the full faith and credit of the U.S. Government''
shall be displayed in smaller type, in italic, and with navy blue or
black lettering. The entire FDIC official digital sign shall be
displayed in Source Sans Pro Web or similar font. For an FDIC official
digital sign that would be illegible if displayed in the colors listed
in this paragraph, due to the color of the background, the FDIC
official digital sign shall be displayed in white to contrast with the
background, subject to the other requirements listed in this paragraph.
The official digital sign required by the provisions of this section
shall have the following design, for which wrapping may be permitted to
address space constraints:
[GRAPHIC] [TIFF OMITTED] TP21AU25.000
(c) Display of FDIC official digital sign. An insured depository
institution's digital deposit-taking channel must clearly,
continuously, and conspicuously display the FDIC official digital sign
specified in paragraph (b) of this section on the following pages or
screens:
(1) Initial page or homepage of the website or application;
(2) Login page; and
(3) Page or screen where the consumer initiates a deposit account
opening.
(d) Non-deposit signage.
(1) Display of non-deposit signage. An insured depository
institution's digital deposit-taking channel that offers the ability to
make deposits electronically and provides access to deposits and one or
more non-deposit products must clearly, continuously, and conspicuously
display signage indicating that the non-deposit products: are not
insured by the FDIC; are not deposits; and may lose value. This signage
must be displayed on all pages or screens primarily dedicated to one or
more non-deposit products.
(2) One-time notification for bank customers related to third-party
non-deposit products.
(i) Notification requirement. An insured depository institution's
digital deposit-taking channel that provides access to a non-deposit
product from a non-bank third party's online interface must provide a
one-time per session notification to a bank customer who is logged into
the insured depository institution's deposit-taking channel before the
customer leaves the insured depository institution's digital deposit-
taking channel to access the non-bank third party's non-deposit
product.
(ii) Content of notification. The notification in paragraph
(d)(2)(i) of this section must clearly and conspicuously state that the
third party's non-deposit products: are not insured by the FDIC; are
not deposits; and may lose value.
(iii) Dismissal of notification. The notification in paragraph
(d)(2)(i) of this section must either be dismissed by an affirmative
act of the bank customer, such as a click or swipe, or automatically
disappear from view after the customer has had a reasonable opportunity
to read the notification. For the purpose of this requirement, a
notification that remains visible for at least three seconds would
provide a reasonable opportunity for a customer to read the
notification.
(iv) Additional disclosures permitted. Nothing in this paragraph
(d) shall be read to limit an insured depository institution's ability
to include additional disclosures in the notification required by
paragraph (d)(2)(i) of this section that may help prevent consumer
confusion, including, for example, that the bank customer is leaving
the insured depository institution's website.
(e) Examples of clear, continuous, and conspicuous placement.
Examples of the FDIC official digital sign and non-deposit signage
placement that would satisfy the ``clear, continuous, and conspicuous''
standard include, but are not limited to, the following:
(1) The homepage of an insured depository institution's website
that continuously displays the FDIC official digital sign near the top
of the page and adjacent to the insured depository institution's name;
(2) The login page for an insured depository institution's mobile
application that displays the FDIC official digital sign immediately
adjacent to the username and password fields;
(3) The deposit account opening page for an insured depository
institution's web-based application that displays the FDIC official
digital sign near the top or center of the page; and
(4) With respect to non-deposit signage, a page on an insured
depository institution's website promoting, for example, annuities
available for purchase, with non-deposit signage appearing towards the
bottom of a promotional text or graphic in a size generally consistent
with other text on the page.
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4. Amend Sec. 328.101 by adding the definition for ``Digital symbol''
in alphabetical order to read as follows:
Sec. 328.101 Definitions.
* * * * *
Digital symbol means the portion of the FDIC official digital sign,
as set forth in Sec. 328.5(b), consisting of ``FDIC'' and
[[Page 40778]]
the one line of smaller type to the right of ``FDIC''.
* * * * *
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on August 19, 2025.
Jennifer M. Jones,
Deputy Executive Secretary.
[FR Doc. 2025-16056 Filed 8-20-25; 8:45 am]
BILLING CODE 6714-01-P