WASHINGTON--A proposal issued by the Treasury would direct the Secretary of the Treasury to cease issuing paper checks for all federal disbursements to the extent permitted by law, America's Credit Unions reported.
The proposal was issued in response to an Executive Order modernizing federal disbursements.
The proposal also directs Treasury to review and, as appropriate, revise procedures for granting limited exceptions where electronic payment methods are not feasible.
America’s Credit Unions said it supported the Executive Order and encouraged further consideration of ways to improve check handling and funds availability rules to deter fraud, adding it is analyzing the Treasury’s proposal and will submit comments by the June 15 deadline.