WASHINGTON—When it comes to transfer limits, the D in Regulation D now stands for Done.
After issuing an interim final rule eliminating the six-per-month transfer limit between savings and checking accounts under Regulation D, the Federal Reserve has released a new set of FAQs stating the board "does not have plans to re-impose transfer limits."
"The underlying reason enabling the changes in Regulation D is the FOMC’s choice of monetary policy framework of an ample reserve regime," the FAQ No. 3 states, noted NAFCU. "In such a regime, reserve requirements are not needed. As a result, the distinction made by the transfer limit between reservable and non-reservable accounts is also not necessary. The committee’s choice of a monetary policy framework is not a short-term choice. The board does not have plans to re-impose transfer limits but may make adjustments to the definition of savings accounts in response to comments received on the board’s interim final rule and, in the future, if conditions warrant."