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The Federal Reserve Seeks Comments on Creating Instant Gross Settlement
This Request for Comment regarding real-time payments (24/7/365) is due by Dec. 14, 2018.
This article was originally published on October 4, 2018, at NACHA.org.
The Federal Reserve is seeking comment on settling fund transfers between banks that is available on a 24/7 basis to provide payment-by-payment interbank settlement in real time and at any time, on any day, including weekends and holidays.
The Board of Governors of the Federal Reserve System (Board) is seeking input through a Request for Comment on potential actions that the Federal Reserve could take to promote ubiquitous, safe, and efficient faster payments in the United States by facilitating real-time interbank settlement of faster payments.
In announcing this request, Fed Governor Lael Brainard said at a recent Chicago Fed event that aligning settlement speed to the real-time nature of the underlying payment would provide a safe and efficient foundation for the next generation of payment services. The request includes developing:
- A service for real-time gross settlement (RTGS) of faster payments that is available to conduct settlement of individual transactions on a 24x7x365 basis; and
- A liquidity management tool that would enable transfers between Federal Reserve accounts on a 24x7x365 basis to support faster payment services, whether provided by the private sector or the Reserve Banks.
The Federal Reserve is seeking feedback through Dec. 14, 2018 on all aspects of the discussion presented in the Notice, including the specific questions posed at the end.