82 FR 46668 - Policy on Payment System Risk
FEDERAL RESERVE SYSTEM Federal Register Volume 82, Issue 193 (October 6, 2017)
Federal Register Volume 82, Issue 193 (October 6, 2017)
| Page Range | 46668-46669 | |
| FR Document | 2017-21602 |
[Federal Register Volume 82, Number 193 (Friday, October 6, 2017)] [Rules and Regulations] [Pages 46668-46669] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-21602] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM 12 CFR Chapter II [Docket No. OP-1572] Policy on Payment System Risk AGENCY: Board of Governors of the Federal Reserve System. ACTION: Policy statement. ----------------------------------------------------------------------- SUMMARY: The Board of Governors of the Federal Reserve System (Board) has revised part II of the Federal Reserve Policy on Payment System Risk (PSR policy) related to the transaction posting times used for measuring balances intraday in institutions' accounts at the Federal Reserve Banks (Reserve Banks) to conform to amendments to regulations governing the use of the Automated Clearing House (ACH) Network by Federal agencies announced by the Department of the Treasury, Bureau of the Fiscal Service (Fiscal Service). Specifically, the amended posting rules conform to the decision of the Fiscal Service to allow Federal agencies to originate and receive same-day entries beginning September 15, 2017. DATES: This policy revision is applicable beginning on September 15, 2017. FOR FURTHER INFORMATION CONTACT: Jeffrey D. Walker, Assistant Director (202-721-4559), Jason Hinkle, Manager, Financial Risk Management (202- 912-7805), or Ian C.B. Spear, Senior Financial Services Analyst (202- 452-3959), Division of Reserve Bank Operations and Payment Systems; for users of Telecommunication Devices for [[Page 46669]] the Deaf (TDD) only, contact 202-263-4869; Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. SUPPLEMENTARY INFORMATION: Background The Board's PSR policy establishes the procedures for measuring balances intraday in institutions' accounts at the Reserve Banks by setting forth the times at which credits and debits for various types of transactions are posted to those accounts (``the posting rules'').\1\ The application of these posting rules determines an institution's intraday account balance and whether it has incurred a negative balance (daylight overdraft). --------------------------------------------------------------------------- \1\ The Board's PSR policy is available at https://www.federalreserve.gov/paymentsystems/files/psr_policy.pdf. --------------------------------------------------------------------------- On September 23, 2015, the Board approved enhancements to the Reserve Banks' FedACH[supreg] SameDay Service (FedACH SameDay Service) in light of amendments to NACHA--The Electronic Payments Association's Operating Rules and Guidelines.\2\ The NACHA amendments, as incorporated into Operating Circular 4, become effective in three phases, beginning with same-day credits in September 2016, same-day debits in September 2017, and faster funds availability in March 2018. Next-day settlement remains available. --------------------------------------------------------------------------- \2\ 80 FR 58248 (Sep. 28, 2015). NACHA, whose membership consists of insured financial institutions and regional payment associations, establishes network-wide ACH rules through its Operating Rules and Guidelines. As an ACH operator, the Reserve Banks, through Operating Circular 4, incorporate NACHA's Operating Rules and Guidelines as rules that govern clearing and settlement of commercial ACH items by the Reserve Banks, except for those provisions specifically excluded in the Operating Circular. --------------------------------------------------------------------------- The Board is revising the PSR policy's posting rules for same-day ACH transactions to conform to amendments to 31 CFR part 210 (part 210) announced on September 11, 2017 by Fiscal Service.\3\ Specifically, the amended posting rules conform to the decision of the Fiscal Service to allow Federal agencies to originate and receive same-day entries beginning September 15, 2017.\4\ --------------------------------------------------------------------------- \3\ The Fiscal Service amended part 210 to address changes to the NACHA Operating Rules, including NACHA's same-day amendments. See 82 FR 42597 (Sep. 11, 2017). Part 210 governs the use of ACH by Federal agencies and incorporates the NACHA Operating Rules, with certain exceptions. \4\ 31 CFR 210.2(d)(7) (as amended Sept. 11, 2017). --------------------------------------------------------------------------- Policy on Payment System Risk The Federal Reserve Policy on Payment System Risk, section II.A, under the heading ``Procedures for Measuring Daylight Overdrafts'' and the subheadings ``Post at 8:30 a.m. eastern time,'' ``Post by 1:00 p.m. eastern time,'' ``Post at 5:00 p.m. eastern time,'' and ``Post at 5:30 p.m. eastern time,'' is amended as follows: Post at 8:30 a.m. eastern time: +/- Term deposit maturities and accrued interest +/- Government and commercial ACH transactions, including return items \5\ --------------------------------------------------------------------------- \5\ With the exception of paper returns and paper notifications of change of prior-dated items that only post at 5:00 p.m.; and paper returns of same-day forward items that only post at 5:30 p.m. Institutions that are monitored in real time must fund the total amount of their commercial ACH credit originations in order for the transactions to be processed. If the Federal Reserve receives commercial ACH credit transactions from institutions monitored in real time after the scheduled close of the Fedwire Funds Service, these transactions will be processed at 12:30 a.m. the next business day, or by the ACH deposit deadline, whichever is earlier. The Account Balance Monitoring System provides intraday account information to the Reserve Banks and institutions and is used primarily to give authorized Reserve Bank personnel a mechanism to control and monitor account activity for selected institutions. For more information on ACH transaction processing, refer to the ACH Settlement Day Finality Guide available through the Federal Reserve Financial Services Web site at http://www.frbservices.org. --------------------------------------------------------------------------- +/- Commercial check transactions, including returned checks \6\ --------------------------------------------------------------------------- \6\ For the three commercial check transaction posting times, the Reserve Banks will post credits and debits to institutions' accounts for checks deposited and presented, respectively, at least 30 minutes before the posting time. --------------------------------------------------------------------------- + Treasury checks, postal money orders, local Federal Reserve Bank checks, and savings bond redemptions in separately sorted deposits; these items must be deposited by the latest applicable deposit deadline preceding the posting time + Advance-notice Treasury investments - Penalty assessments for tax payments from the Treasury Investment Program (TIP).\7\ --------------------------------------------------------------------------- \7\ The Reserve Banks will identify and notify institutions with Treasury-authorized penalties on Thursdays. In the event that Thursday is a holiday, the Reserve Banks will identify and notify institutions with Treasury-authorized penalties on the following business day. Penalties will then be posted on the business day following notification. --------------------------------------------------------------------------- Post by 1:00 p.m. eastern time: +/- Commercial check transactions, including returned checks +/- Government and commercial FedACH SameDay Service transactions, including return items \8\ --------------------------------------------------------------------------- \8\ With the exception of paper returns and paper notifications of change (NOCs) of prior-dated items that only post at 5:00 p.m.; paper returns of same-day forward items that only post at 5:30 p.m.; and FedLine Web returns and FedLine Web NOCs that only post at 8:30 a.m. and 5:00 p.m., depending on when the item is received by Reserve Banks. --------------------------------------------------------------------------- + Same-day Treasury investments. Post at 5:00 p.m. eastern time: +/- Government and commercial FedACH SameDay Service transactions, including return items \9\ --------------------------------------------------------------------------- \9\ With the exception of paper returns of same-day forward items that only post at 5:30 p.m. --------------------------------------------------------------------------- + Treasury checks, postal money orders, and savings bond redemptions in separately sorted deposits; these items must be deposited by the latest applicable deposit deadline preceding the posting time + Local Federal Reserve Bank checks; these items must be presented before 3:00 p.m. eastern time Post at 5:30 p.m. eastern time: +/- Government and commercial FedACH SameDay Service return transactions \10\ --------------------------------------------------------------------------- \10\ With the exception of paper returns and paper notifications of change (NOCs) of prior-dated items that only post at 5:00 p.m.; and FedLine Web returns and FedLine Web NOCs that only post at 8:30 a.m. and 5:00 p.m., depending on when the item is received by Reserve Banks. --------------------------------------------------------------------------- +/- Commercial check transactions, including returned checks By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Reserve Bank Operations and Payment Systems under delegated authority, October 3, 2017. Ann E. Misback, Secretary of the Board. [FR Doc. 2017-21602 Filed 10-5-17; 8:45 am] BILLING CODE P
![46668 Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Rules and Regulations
for unrestricted use at the time of practical, procedures and engineering and other NRC regulations limiting
license termination. Two bases for this controls . . . to achieve . . . doses to doses to members of the public, the
confidence are that no new legacy sites members of the public as low as Commission has determined that
have been identified since the NRC’s reasonably achievable (ALARA).’’ By licensees are operating their facilities to
financial assurance regulations were requiring public doses to be ALARA, minimize leaks and spills, monitor for
promulgated in 1988, and no sites have existing NRC regulations provide ample residual radioactivity, adjust
had to make adjustments to their assurance that the need for a prompt decommissioning funding to account for
decommissioning funds due to the remediation rule is unlikely to grow residual surface and subsurface
identification of significant residual with time. radioactivity, and maintain doses to the
radioactivity since implementation of Based on these considerations, earlier public within regulatory limits,
the DPR. assessments, and its conclusions from including ALARA requirements.
The staff also found in SECY–16–0121 the 2 additional years of operating Compliance with these regulations
that residual radioactivity detected to experience, the NRC staff in SECY–16–
date has been limited mostly to onsite protects public health and safety and
0121 recommended that further work on
areas, and there has not been a significantly reduces the potential for
a prompt remediation rule be
significant impact on public health and additional legacy sites.
discontinued. On December 21, 2016, in
safety. Under current regulations, this is SRM–SECY–16–0121 (ADAMS III. Availability of Documents
unlikely to change. In addition to Accession No. ML16356A583), the
complying with applicable dose Commission accepted the staff’s The documents identified in the
standards, for example, licensees also recommendation. following table are available to
must comply with the requirement in 10 From the staff’s evaluation of how interested persons through one or more
CFR 20.1101(b) to ‘‘use, to the extent licensees are complying with the DPR of the following methods, as indicated.
ADAMS
Accession No./
Document Federal Register
citation
Decommissioning Planning; Proposed Rule (January 22, 2008) ........................................................................................... 73 FR 3812
Decommissioning Planning; Final Rule (June 17, 2011) ........................................................................................................ 76 FR 35512
SRM—SECY–07–0177—Proposed Rule: Decommissioning Planning .................................................................................. ML073440549
Draft Proposed Technical Basis For Prompt Remediation, Rev. 4 ........................................................................................ ML111580353
FEDERAL REGISTER document ‘‘Consideration of Rulemaking to Address Prompt Remediation of Residual Radioactivity 76 FR 42074
During Operations.’’ (July 18, 2011).
Draft Technical Basis For Prompt Remediation, Rev. 3 ......................................................................................................... ML120190685
SRM–SECY–12–0046, ‘‘Options for Revising the Regulatory Approach to Groundwater Protection’’ .................................. ML121450704
SECY–13–0108, ‘‘Staff Recommendations for Addressing Remediation of Residual Radioactivity During Operations’’ ...... ML13217A230
SRM–SECY–13–0108 ‘‘Staff Recommendations For Addressing Remediation Of Residual Radioactivity During Oper- ML13354B759
ations’’.
Nuclear Energy Institute, NEI 07–07, ‘‘Industry Groundwater Protection Initiative’’ ............................................................... ML072610036
SECY–16–0121, ‘‘Staff Recommendations For Rulemaking To Address Remediation Of Residual Radioactivity During ML16235A298
Operation’’.
SRM–SECY–16–0121, ‘‘Staff Recommendations For Rulemaking To Address Remediation Of Residual Radioactivity ML16356A583
During Operation’’.
IV. Conclusion For the Nuclear Regulatory Commission. Federal Reserve Banks (Reserve Banks)
Annette L. Vietti-Cook, to conform to amendments to
The NRC is no longer pursuing Secretary of the Commission. regulations governing the use of the
revisions to its regulations in 10 CFR [FR Doc. 2017–21546 Filed 10–5–17; 8:45 am] Automated Clearing House (ACH)
part 20 for the reasons discussed in this BILLING CODE 7590–01–P Network by Federal agencies announced
document. In the next edition of the by the Department of the Treasury,
Unified Agenda, the NRC will update Bureau of the Fiscal Service (Fiscal
the entry for this rulemaking activity FEDERAL RESERVE SYSTEM Service). Specifically, the amended
and reference this document to indicate posting rules conform to the decision of
that it is no longer being pursued. This 12 CFR Chapter II the Fiscal Service to allow Federal
rulemaking activity will appear in the agencies to originate and receive same-
[Docket No. OP–1572]
‘‘Completed Actions’’ section of that day entries beginning September 15,
edition of the Unified Agenda, but will Policy on Payment System Risk 2017.
not appear in future editions. If the NRC DATES: This policy revision is applicable
decides to pursue similar or related AGENCY: Board of Governors of the
Federal Reserve System. beginning on September 15, 2017.
rulemaking activities in the future, it FOR FURTHER INFORMATION CONTACT:
ACTION: Policy statement.
asabaliauskas on DSKBBXCHB2PROD with RULES
will inform the public through a new Jeffrey D. Walker, Assistant Director
rulemaking entry in the Unified Agenda. SUMMARY: The Board of Governors of the (202–721–4559), Jason Hinkle, Manager,
Dated at Rockville, Maryland, this 2nd day Federal Reserve System (Board) has Financial Risk Management (202–912–
of October 2017. revised part II of the Federal Reserve 7805), or Ian C.B. Spear, Senior
Policy on Payment System Risk (PSR Financial Services Analyst (202–452–
policy) related to the transaction posting 3959), Division of Reserve Bank
times used for measuring balances Operations and Payment Systems; for
intraday in institutions’ accounts at the users of Telecommunication Devices for
VerDate Sep<11>2014 16:21 Oct 05, 2017 Jkt 244001 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 E:\FR\FM\06OCR1.SGM 06OCR1](https://thefederalregister.org/doc/82_FR_46861/page/1.svg)
![Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Rules and Regulations 46669
the Deaf (TDD) only, contact 202–263– subheadings ‘‘Post at 8:30 a.m. eastern + Same-day Treasury investments.
4869; Board of Governors of the Federal time,’’ ‘‘Post by 1:00 p.m. eastern time,’’ Post at 5:00 p.m. eastern time:
Reserve System, 20th and C Streets ‘‘Post at 5:00 p.m. eastern time,’’ and +/¥ Government and commercial
NW., Washington, DC 20551. ‘‘Post at 5:30 p.m. eastern time,’’ is FedACH SameDay Service
SUPPLEMENTARY INFORMATION: amended as follows: transactions, including return
Post at 8:30 a.m. eastern time: items 9
Background +/¥ Term deposit maturities and + Treasury checks, postal money
The Board’s PSR policy establishes accrued interest orders, and savings bond
the procedures for measuring balances +/¥ Government and commercial redemptions in separately sorted
intraday in institutions’ accounts at the ACH transactions, including return deposits; these items must be
Reserve Banks by setting forth the times items 5 deposited by the latest applicable
at which credits and debits for various +/¥ Commercial check transactions, deposit deadline preceding the
types of transactions are posted to those including returned checks 6 posting time
accounts (‘‘the posting rules’’).1 The + Treasury checks, postal money + Local Federal Reserve Bank checks;
application of these posting rules orders, local Federal Reserve Bank these items must be presented
determines an institution’s intraday checks, and savings bond before 3:00 p.m. eastern time
account balance and whether it has redemptions in separately sorted Post at 5:30 p.m. eastern time:
incurred a negative balance (daylight deposits; these items must be +/¥ Government and commercial
overdraft). deposited by the latest applicable FedACH SameDay Service return
On September 23, 2015, the Board deposit deadline preceding the transactions 10
approved enhancements to the Reserve posting time +/¥ Commercial check transactions,
+ Advance-notice Treasury
Banks’ FedACH® SameDay Service including returned checks
investments
(FedACH SameDay Service) in light of ¥ Penalty assessments for tax By order of the Board of Governors of the
amendments to NACHA—The payments from the Treasury Federal Reserve System, acting through the
Electronic Payments Association’s Investment Program (TIP).7 Director of the Division of Reserve Bank
Operating Rules and Guidelines.2 The Operations and Payment Systems under
Post by 1:00 p.m. eastern time:
NACHA amendments, as incorporated delegated authority, October 3, 2017.
+/¥ Commercial check transactions,
into Operating Circular 4, become including returned checks Ann E. Misback,
effective in three phases, beginning with +/¥ Government and commercial Secretary of the Board.
same-day credits in September 2016, FedACH SameDay Service [FR Doc. 2017–21602 Filed 10–5–17; 8:45 am]
same-day debits in September 2017, and transactions, including return BILLING CODE P
faster funds availability in March 2018. items 8
Next-day settlement remains available.
The Board is revising the PSR policy’s 5 With the exception of paper returns and paper
DEPARTMENT OF TRANSPORTATION
posting rules for same-day ACH notifications of change of prior-dated items that
transactions to conform to amendments only post at 5:00 p.m.; and paper returns of same-
day forward items that only post at 5:30 p.m. Federal Aviation Administration
to 31 CFR part 210 (part 210) announced Institutions that are monitored in real time must
on September 11, 2017 by Fiscal fund the total amount of their commercial ACH 14 CFR Part 39
Service.3 Specifically, the amended credit originations in order for the transactions to
posting rules conform to the decision of be processed. If the Federal Reserve receives [Docket No. FAA–2017–0254; Product
commercial ACH credit transactions from Identifier 2017–NE–10–AD; Amendment 39–
the Fiscal Service to allow Federal institutions monitored in real time after the 19066; AD 2017–20–09]
agencies to originate and receive same- scheduled close of the Fedwire Funds Service,
day entries beginning September 15, these transactions will be processed at 12:30 a.m. RIN 2120–AA64
2017.4 the next business day, or by the ACH deposit
deadline, whichever is earlier. The Account Airworthiness Directives; General
Policy on Payment System Risk Balance Monitoring System provides intraday
Electric Company Turbofan Engines
account information to the Reserve Banks and
The Federal Reserve Policy on institutions and is used primarily to give authorized
Payment System Risk, section II.A, Reserve Bank personnel a mechanism to control AGENCY: Federal Aviation
under the heading ‘‘Procedures for and monitor account activity for selected Administration (FAA), DOT.
institutions. For more information on ACH ACTION: Final rule.
Measuring Daylight Overdrafts’’ and the transaction processing, refer to the ACH Settlement
Day Finality Guide available through the Federal
1 The Board’s PSR policy is available at https:// Reserve Financial Services Web site at http:// SUMMARY: We are adopting a new
www.federalreserve.gov/paymentsystems/files/psr_ www.frbservices.org. airworthiness directive (AD) for all
policy.pdf. 6 For the three commercial check transaction General Electric Company (GE) CF34–8E
2 80 FR 58248 (Sep. 28, 2015). NACHA, whose posting times, the Reserve Banks will post credits model turbofan engines. This AD was
membership consists of insured financial and debits to institutions’ accounts for checks
institutions and regional payment associations, deposited and presented, respectively, at least 30
prompted by a report that using a
establishes network-wide ACH rules through its minutes before the posting time. certain repair procedure for the fan
Operating Rules and Guidelines. As an ACH 7 The Reserve Banks will identify and notify outlet guide vane (OGV) frame could
operator, the Reserve Banks, through Operating institutions with Treasury-authorized penalties on alter the strength capability of the fan
Circular 4, incorporate NACHA’s Operating Rules Thursdays. In the event that Thursday is a holiday,
and Guidelines as rules that govern clearing and
OGV frame. This AD requires
the Reserve Banks will identify and notify
replacement of all fan OGV frames
asabaliauskas on DSKBBXCHB2PROD with RULES
settlement of commercial ACH items by the Reserve institutions with Treasury-authorized penalties on
Banks, except for those provisions specifically the following business day. Penalties will then be
excluded in the Operating Circular. posted on the business day following notification. 9 With the exception of paper returns of same-day
3 The Fiscal Service amended part 210 to address 8 With the exception of paper returns and paper forward items that only post at 5:30 p.m.
changes to the NACHA Operating Rules, including notifications of change (NOCs) of prior-dated items 10 With the exception of paper returns and paper
NACHA’s same-day amendments. See 82 FR 42597 that only post at 5:00 p.m.; paper returns of same- notifications of change (NOCs) of prior-dated items
(Sep. 11, 2017). Part 210 governs the use of ACH day forward items that only post at 5:30 p.m.; and that only post at 5:00 p.m.; and FedLine Web
by Federal agencies and incorporates the NACHA FedLine Web returns and FedLine Web NOCs that returns and FedLine Web NOCs that only post at
Operating Rules, with certain exceptions. only post at 8:30 a.m. and 5:00 p.m., depending on 8:30 a.m. and 5:00 p.m., depending on when the
4 31 CFR 210.2(d)(7) (as amended Sept. 11, 2017). when the item is received by Reserve Banks. item is received by Reserve Banks.
VerDate Sep<11>2014 16:21 Oct 05, 2017 Jkt 244001 PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 E:\FR\FM\06OCR1.SGM 06OCR1](https://thefederalregister.org/doc/82_FR_46861/page/2.svg)
Document Created: 2017-10-06 00:08:50
Document Modified: 2017-10-06 00:08:50
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Policy statement. | |
| Dates | This policy revision is applicable beginning on September 15, 2017. | |
| Contact | Jeffrey D. Walker, Assistant Director (202-721-4559), Jason Hinkle, Manager, Financial Risk Management (202- 912-7805), or Ian C.B. Spear, Senior Financial Services Analyst (202- 452-3959), Division of Reserve Bank Operations and Payment Systems; for users of Telecommunication Devices for the Deaf (TDD) only, contact 202-263-4869; Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. | |
| FR Citation | 82 FR 46668 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR