CHICAGO—The Federal Reserve released a proposal relating to settlements or other services to address the future needs of a real-time retail payments environment during its forum here this week.
The Fed is encouraging comments on the proposal – especially from smaller financial institutions, such as credit unions, according to NAFCU, which attended the meeting as a member of the FedPayments Improvement Community.
The comment period will remain open through Dec. 14.
This settlement proposal is a result of the Fed's efforts to assess settlements, according to Fed Gov. Lael Brainard, who delivered a keynote address during the forum. During her speech, she noted that the Fed could develop a service available 24/7 to "provide payment-by-payment interbank settlement in real time and at any time, on any day, including weekends and holidays.
"A 24/7 [real-time gross settlement] service provided by the Reserve Banks could significantly improve the prospect that banks of all sizes will have equitable access to a real-time interbank settlement infrastructure for faster payments in the long term," she added.
NAFCU said it is reviewing the proposal.