WASHINGTON–Both credit union trade groups are expressing support for an announcement by the Federal Reserve of an interim final rule to amend Regulation D to delete the six-per-month limit on convenient transfers from the "savings deposit" definition.
The interim final rule allows depository institutions immediately to suspend enforcement of the six transfer limit and to allow their customers/members to make an unlimited number of convenient transfers and withdrawals from their savings deposits “at a time when financial events associated with the coronavirus pandemic have made such access more urgent,” the Fed said.
The Fed noted the regulatory limit in Regulation D was the basis for distinguishing between reservable "transaction accounts" and non-reservable "savings deposits." The board's recent action reducing all reserve requirement ratios to zero has rendered this regulatory distinction unnecessary, the Fed added.
Concurrently, the Federal Reserve is making temporary revisions to the FR 2900 series, FR Y-9, and FR 2886b reports to reflect the amendments to Regulation D.
CUNA Response
“(Friday’s) action by the Federal Reserve will make it easier for credit unions to give members access to their funds, which is vitally important as communities around the country deal with the impacts of the COVID-19 outbreak,” said CUNA President/CEO Jim Nussle. “We’ve long believed the threshold was arbitrary and unnecessary. We thank the Federal Reserve for making this critical change.”
NAFCU Response
“NAFCU has long advocated for the Federal Reserve to lift its six-per-month transaction limit on consumers’ savings accounts,” said NAFCU President and CEO Dan Berger. “As the coronavirus pandemic exacerbates longstanding concerns with the transaction limit, it is important consumers have the flexibility they need to freely transfer essential funds between their accounts to cover everyday expenses and manage their personal finances. NAFCU appreciates the Fed’s decision to amend the rule and keeping it permanently in place would give consumers greater control over their finances.”