Policy Statement on Payments System RiskPotential Longer-Term Policy Direction — 2002-08-22 [02-21454]

The Board is announcing its decision not to pursue in the foreseeable future the following policy options as part of a potential longer-term direction for the Board's payments system risk policy (PSR policy): (1) lowering self-assessed net debit caps and eliminating two- week average caps and (2) rejecting all payments with settlement-day finality that would cause an institution to exceed its daylight overdraft capacity level. The Board will, however, continue analyzing the benefits and drawbacks of a two-tiered pricing regime for daylight overdrafts in which institutions that pledge collateral to the Reserve Banks would pay a lower fee on their collateralized daylight overdrafts than on their uncollateralized daylight overdrafts.