Collection of Checks and Other Items by Federal Reserve Banks and Availability of Funds and Collection of Checks — 1998-03-16 [98-6614]

The Board requests comment on the benefits and drawbacks associated with its same-day settlement rule, which became effective in January 1994, and the implications of potential modifications of that rule to reduce or eliminate legal disparities between the Federal Reserve Banks and private-sector banks in the presentment and settlement of checks. The same-day settlement rule requires paying banks to provide same-day settlement for checks presented by private- sector banks by 8:00 a.m. local time at specified locations. The Board is evaluating the market experience under the same-day settlement rule and is considering further modifications to that rule pursuant to its responsibility under the Expedited Funds Availability Act to regulate the receipt, payment, collection, or clearing of checks in order to carry out the provisions of that Act and to improve the check collection system.