CHICAGO — The Federal Reserve said it will resume accepting penny deposits from banks and credit unions at commercial coin distribution locations beginning Jan. 14, restoring services that had been suspended amid inventory constraints following the end of penny production.
Federal Reserve Financial Services (FRFS) said the move is intended to better support the circulation of existing pennies for commercial activity. While the Fed has continued to support penny deposits, limited local inventories had restricted acceptance at some coin distribution sites.
The Fed said it will closely monitor the flow of penny deposits as services resume to determine whether additional ordering options could be expanded, even though new penny production has ended.
CUToday.info previously reported that the halt in penny production raised operational concerns for credit unions and retailers, particularly around coin recirculation, deposits, and the uneven availability of low-denomination coins in local markets. Industry groups had warned that disruptions in penny acceptance could complicate cash handling and burden financial institutions that continue to serve cash-dependent members.
The Federal Reserve emphasized that its role in coin operations is limited to distributing coins to banks and credit unions on behalf of the U.S. Mint, which remains the nation’s issuing authority. The Fed does not provide coins directly to businesses or consumers.
FRFS provides payment services to financial institutions and works to support the stability, integrity, and efficiency of the U.S. monetary, financial, and payment systems.