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Check/Check 21 Services

Upcoming Check Services operations freeze

May 15, 2016

The Federal Reserve Banks’ Check Services will be unavailable between 3 a.m. ET, Saturday, June 25, through 2 p.m. ET, Sunday, June 26, 2016. The freeze period is necessary to conduct a Systemwide technical readiness test.

During the test, Check files will not be processed, and Deposit Notifications will not be generated. Check files normally deposited during this period will need to be held and processed after the test is completed, which is expected to be after 2 p.m. ET on June 26. Additional information will be communicated via E-Alert notifications and on the Check Services page.

 

FedACH® Services

Do you know what the September 23 implementation of Same Day ACH means for reversal entries?

May 15, 2016

Effective September 23, 2016, reversal entries are subject to the same Phase 1 Same Day Automated Clearing House (ACH) implementation rules as are forward entries, meaning that only credit entries will be allowed to settle same day.

As reversals create the opposite effect of the original forward entry, only debit entries can be reversed as same day items in Phase 1 of Same Day ACH since the reversals are credit entries allowed under the NACHA® ACH Rules

Credit entries can be reversed, but the reversal entries cannot settle as same day items under the Phase 1 implementation rules because they are effectively debits and therefore not eligible for same-day settlement until Phase 2 of implementation.

Visit the Fed’s Same Day ACH Resource Center and review Same Day ACH FAQs for more information on Same Day ACH.

“NACHA” is a registered trademark of NACHA–The Electronic Payments Association.

Announcement

Effective September 23, 2016, reversal entries are subject to the same Phase 1 Same Day Automated Clearing House (ACH) implementation rules as are forward entries, meaning that only credit entries will be allowed to settle on the same day. Visit the Fed’s Same Day ACH Resource Center and review Same Day ACH FAQs for more information on Same Day ACH.

 

Visit EPCOR’s Same Day ACH Symposium near you

May 15, 2016

All financial institutions will be impacted by Same Day Automated Clearing House (ACH) implementation on September 23, 2016. Be sure your institution is ready, and find all of the actionable Same Day ACH answers you need during EPCOR’s upcoming Same Day ACH Symposium.

Dates, locations and registration links for the symposium are below:

LocationsDates
St. Louis, MO June 8 (Off-site Link)
Kansas City, MO (Co-sponsored by the Federal Reserve Bank of Kansas City) June 9 (Off-site Link)
Oklahoma City, OK (Co-sponsored by the Oklahoma Bankers Association) June 14 (Off-site Link)
La Vista, NE June 21 (Off-site Link)
Columbus, OH (Co-sponsored by the Ohio Bankers League) June 23 (Off-site Link)
Wichita, KS June 23 (Off-site Link)

These full-day interactive discussions will delve into the major and minor details of Same Day ACH so that you can prepare effectively for the first phase of implementation on September 23.

Join EPCOR to discuss:

  • Same Day ACH – What the Rules Say
  • Same Day ACH Receipt Considerations and Impact – Receiving Depository Financial Institution (RDFI) and Receiver Perspectives
  • The Operator Perspective of Same Day ACH – What the Federal Reserve is Planning
  • Faster Returns/Reversals – When and How They Will Work
  • Thinking About Same Day ACH Origination? – Opportunities and Suggestions
  • Checklists and Takeaways – Tools for Workplace Implementation

To find everything Same Day ACH in one convenient place, visit EPCOR’s Same Day ACH portal (Off-site Link).

Announcement

All financial institutions will be impacted by Same Day Automated Clearing House (ACH) implementation on September 23, 2016. Be sure your institution is ready, and find all of the actionable Same Day ACH answers you need during EPCOR’s upcoming Same Day ACH Symposium. To find everything Same Day ACH in one convenient place, visit EPCOR’s Same Day ACH portal (Off-site Link).

 

FedACH Feature: The FedACH Risk® RDFI Alert Service can provide a basic type of ACH positive pay service to business customers

May 15, 2016

Your institution can use the FedACH Risk RDFI Alert Service to offer a basic type of positive pay service to its business customers. Once the service is activated, establishing all items criteria sets for business customers will automatically send an email to them with reports of all incoming Automated Clearing House (ACH) debits and credits along with corresponding information about originators and amounts.

Scan this quick reference guide Creating a Basic Positive Pay Notification Service for the DFI Corporate Customer (PDF) – and learn more about the information-only RDFI Alert Service.

Announcement

Your institution can use the FedACH Risk RDFI Alert Service to offer a basic type of positive pay service to its business customers. Scan this quick reference guide Creating a Basic Positive Pay Notification Service for the DFI Corporate Customer (PDF) and learn more about the information-only RDFI Alert Service.

 

FedCash® Services

Federal Reserve Banks temporarily suspend the acceptance of uncurrent coin deposits

May 15, 2016

As announced (PDF) on May 9, 2016, the Federal Reserve Banks temporarily suspended the acceptance of uncurrent coin deposits.

Change in U.S. Mint Policy
On November 2, 2015, the U.S. Mint temporarily suspended its redemption of bent and partial coin due to concern that unlawful activity was being conducted through the coin redemption program (see the Federal Register (Off-site Link) notice for more information). As a result, several Federal Reserve Banks have been approached by depository institutions (DIs) about sending bulk deposits of bent or partial coin mixed with uncurrent coin. The Operating Circular 2 (OC-2) deposit allowance for uncurrent coin was intended for occasional DI deposits and not bulk deposits, through which unlawful activity could be occurring.

Change in Federal Reserve’s Uncurrent Coin Deposit Process
Due to the suspension of the U.S. Mint’s bent or partial coin redemption program, and the potential use of the Federal Reserve Banks’ uncurrent coin acceptance channel to deposit bent or partial coin, effective May 9, 2016, the Federal Reserve Banks temporarily suspended the acceptance of uncurrent coin deposits. This suspension will remain in effect until the U.S. Mint resumes its bent or partial coin redemption program. The Federal Reserve Banks will send a notification once it resumes accepting deposits of uncurrent coin.

The U.S. Mint has not determined when it will resume its bent or partial coin redemption program. It will assess the requirements for depositing coin using this program and develop additional safeguards, as necessary, to ensure the integrity of U.S. coinage.

What are uncurrent and bent or partial coins?

  • Uncurrent coins are whole U.S. coins that are merely worn or reduced in weight by natural abrasion yet are readily and clearly recognizable as to genuineness and denomination, and are machine countable.
  • Bent or partial coins are coins that can be identified as to genuineness and denomination, but have been bent or twisted out of shape, punched, clipped, plugged, fused or defaced.

Additional information
If you have questions, please contact your local FedCash® Services District Contacts.

Announcement

As announced (PDF) on May 9, 2016, the Federal Reserve Banks temporarily suspended the acceptance of uncurrent coin deposits. This suspension will remain in effect until the U.S. Mint resumes its bent or partial coin redemption program. The Federal Reserve Banks will send a notification once it resumes accepting deposits of uncurrent coin. If you have questions, please contact your local FedCash® Services District Contacts.

 

Reminder - FedCash Services revised Deposit Visual Reference Guide now available

May 15, 2016

The Deposit Visual Reference Guide has recently been updated and is now available.

The guide was updated to reflect the changes to Operating Circular 2 (PDF) (OC-2) Cash Services and the Cash Services Manual of Procedures (PDF) (CSMOP) that took effect on January 4, 2016.

The Deposit Visual Reference Guide is a supplement to the CSMOP and is not all inclusive of the depositing requirements. The guide depicts examples of correct and incorrect currency and coin deposits and descriptions of how those deposits should be prepared.

In addition, the updated guide features a new user-friendly format, as shown in the excerpt below.

Sample Images from Deposit Visual Reference Guide

 

For questions about the revised depositing procedures, please contact your local FedCash Services representative.

Reminder

The Deposit Visual Reference Guide has recently been updated and is now available.The guide was updated to reflect the changes to Operating Circular 2 (OC-2) Cash Services and the Cash Services Manual of Procedures (CSMOP) that took effect on January 4, 2016. For questions about the revised depositing procedures, please contact your local FedCash Services representative.

 

FedLine® Access Solutions

Review changes to Operating Circulars, effective June 30, 2016

May 15, 2016

Effective June 30, 2016, the Federal Reserve Banks are amending Operating Circular 5, Electronic Access, by adding an information security appendix. This new Appendix A is intended to serve as a consolidated location of information security responsibilities of the Reserve Banks and of Reserve Banks’ financial services and electronic access customers. 

Conforming revisions are also being made to Operating Circular 4, Automated Clearing House Items, Operating Circular 6, Funds Transfers Through the Fedwire® Funds Service, Operating Circular 7, Book-Entry Securities Account Maintenance and Transfer Services, and Operating Circular 12, Multilateral Settlement. The amendments to Operating Circulars 4, 6, 7 and 12 are also effective June 30, 2016.

Continued use of Federal Reserve Bank services on or after June 30, 2016, constitutes agreement to the revised terms of Operating Circular 5 (including new Appendix A), as well as to the revised terms of Operating Circulars 4, 6, 7 and 12 (including their revised appendices). For this reason and because the revisions may necessitate making changes to your organization’s systems and procedures, it is very important that you review the revisions. Please visit our Operating Circulars page for a Summary of Key Changes (PDF), as well as the definitive text of the revised Operating Circulars.

For questions regarding Federal Reserve Bank services, please contact the Customer Contact Center.

Effective Date

June 30, 2016
Effective this date, the Federal Reserve Banks are amending Operating Circular 5, Electronic Access, by adding an information security appendix. Conforming revisions are also being made to Operating Circulars 4, 6, 7 and 12 and are also effective June 30, 2016.

 

General

2016 Federal Reserve Payments Study underway

May 15, 2016

As announced in a November 5, 2015 press release (PDF), the Federal Reserve is conducting its sixth triennial study to determine the current aggregate volume and composition of electronic and check payments in the United States. The study builds upon research begun by the Federal Reserve in 2001 to provide the public and the payments industry with estimates and trend information about the evolving nature of the nation’s payments system. A public report containing initial topline estimates is expected to be published in December 2016.

If your institution has been contacted to participate in the survey, please be sure to report the requested data by May 27, 2016. The Federal Reserve appreciates your participation in this important ongoing research effort.

 

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FedFlash is your source for the latest Federal Reserve Financial Services operational news. Each bulletin keeps you informed of issues critical to your day-to-day operations, providing you with National and District updates regarding our products and services, processes, technical protocols and contact information.