Page 18 - GS170601

Views

The amendments, which take effect in July 2018, also
Insider’sreport address requirements for "expeditiously" returning
on payments: checks and dealing with duplicate deposits that arise
when checks enter the clearing system by way of remote
deposit capture.

The amendments should be well received by financial
Fed addresses e-checks, institutions and their customers, as the issues addressed
have been difficult to navigate under a regulatory regime
that speaks primarily to paper-based check clearing.
RDC duplicates Reg CC implements federal laws enacted in the late 1980s

By Patti Murphy (the Expedited Funds Availability Act) and the early 2000s
(the Check 21 Act), when processes like check truncation
ProScribes Inc. and image check exchange were considered cutting
edge. Yet today better than 99.99 percent of checks that
clear through the Federal Reserve Banks are electronic
he Federal Reserve wants to move check pay- images, according to a document detailing the adopted
ments into the 21st century. A batch of amend- amendments. And electronic images clear far faster than
ments to Regulation CC (rules governing check paper.
T collection and funds availability) handed down
in May 2017 include changes that would place electroni- As it was originally written, Reg CC requires a financial
cally created checks on an equal regulatory footing with institution that determines it will not pay a check to return
paper checks. And that could spur ongoing initiatives that check to the financial institution that originally
to promote completely digital checks, sometimes called accepted the item for deposit – and to do so expeditiously.
e-checks. It defines expeditious as two to four business days,

Hospitality Health & Beauty Retail