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NAFCU seeks CU feedback on Fed’s FedNow proposal
The Federal Reserve last week issued a proposed rule to govern funds transfers over its FedNow Service that would establish a new, comprehensive set of rules and set out legal rights and obligations of the Reserve Banks and FedNow Service participants. In a new Regulatory Alert sent to members Tuesday, NAFCU seeks credit union feedback on the proposal.
The Regulatory Alert details how the issue impacts credit unions, noting the initial launch is set to include core clearing and settlement functionality, with other features such as a request-for-payment capability and tools to support participants in their handling of payment inquiries, reconcilements, and certain exceptions. The Fed will continue to review the service and augment and enhance features in subsequent releases as needed.
After announcing participants in the FedNow Service's pilot program, the Federal Reserve in February released its updated launch timing, indicating the Fed's real-time payments system will be ready in 2023. NAFCU has previously shared with the Fed ways in which credit unions and their members would benefit from affordable faster payments capabilities and has encouraged an accelerated launch.
The Regulatory Alert also provides credit unions with questions to consider as they provide feedback. Comments are due to NAFCU July 26 and can be submitted through the alert; comments are due to the Fed 60 days following publication in the Federal Register.