WASHINGTON—The Federal Reserve has extended the comment period for its proposed rule to govern funds transfers over its FedNow Service, which would establish a new, comprehensive set of rules and set out legal rights and obligations of the Reserve Banks and FedNow Service participants.
Comments on the proposal are now due to the Fed Sept. 9.
NAFCU pointed out it had previously noted the initial FedNow launch is set to include core clearing and settlement functionality, in addition to other features such as a request-for-payment capability and tools to support participants in their handling of payment inquiries, reconcilements, and certain exceptions. In addition, the Fed will continue to review the service and augment and enhance features in subsequent releases as needed.
The Federal Reserve in February released its updated launch timing, indicating the Fed's real-time payments system will be ready in 2023.