WASHINGTON—CUNA said it supports the Federal Reserve’s ongoing development of the FedNow service, a 24x7x365 real-time payments network.
In a letter to the Fed in response to potential modifications to Federal Reserve policy on payment system risk to expand access to collateralized intraday credit, clarify access to uncollateralized credit, and support the deployment of the FedNow service.
“Credit unions look forward to working with Board staff as the network is developed. We encourage the Board to use all the resources at its disposal to speed up development of FedNow so that new products and services can be brought to the market,” the letter reads. “We also look forward to continuing to work with the Board as it proposes changes to regulations and operating procedures to implement FedNow and the FedNow Liquidity Management Tool (LMT).”
Other Points Raised
CUNA said it also encourages the Fed to:
- Continue to work with credit unions and other financial institutions as adjustments may be necessary as FedNow becomes operational
- Revise the daylight overdraft and the penalty fee calculations for all institutions in order to reflect the 24-hour business day in a manner that results in no overall increase in fees