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Federal Reserve Approves New Rules for Posting ACH Transactions
Wednesday, December 3, 2014 6:40 AM

The Federal Reserve Monday approved new rules which will enhance the efficiency of the payments system. The new plan changes the times when the Reserve Banks will post automated clearing house (ACH) debit transactions and commercial checks that are processed overnight. The new rule takes effect July 23, 2015.

Under the new set of rules, ACH debit transactions processed overnight will post at 8:30 a.m. (ET) to banks' Federal Reserve accounts. The change makes the posts better align with the time that ACH credit transactions post and is 2-1/2 hours earlier than the 11 a.m. (ET) set by the Fed's former rule.

For commercial checks—those owned and used by a business or corporation—the Fed adopted moving the posting time for receiving most credits for deposits and debits for presentments to 8:30 a.m. (ET), and establishing two other posting times at 1 and 5:30 p.m. (ET).

The Credit Union National Association had urged the Fed to minimize the costs and impact on credit unions, corporate credit unions and other payment providers that may be affected, and to provide at least six months or more for implementation.

The Federal Reserve Board cited comment letters and concerns from smaller institutions and credit unions, including CUNA's comment letter, and performed additional analysis to address concerns regarding smaller institutions.

Also on Monday, the Fed also adopted a set of principles for establishing future posting rules for the Reserve Banks' same-day ACH service. It also adopted companion amendments to Regulation J to permit the Reserve Banks to require paying banks to settle any checks within a half-hour after receiving them from the Fed.