January 28, 2019
An updated Cash Services Manual of Procedures (CSMOP) will go into effect on March 1, 2019. In addition to the operational change announced in June 2018 that eliminated the deposit facing requirement for $50 and $100 denominations, the updated CSMOP includes refinements to Federal Reserve requirements for preparing currency deposits.
The CSMOP supplements Operating Circular 2 (OC2) – Cash Services (PDF), and defines operational procedures for FedCash® Services. There are no changes to the current version of the OC2, dated January 4, 2016. OC2 and the CSMOP are available on the Operating Circulars page of FRBservices.orgSM under the section for OC2 – Cash Services. Depository institutions must reference both OC2 and the CSMOP for complete information regarding the Federal Reserve’s terms and procedures.
Your continued use of the Federal Reserve Banks’ cash services on or after the effective date of March 1, 2019, will constitute agreement to the terms in both OC2 and the CSMOP.
It is important that you review the changes and make any necessary adjustments to ensure your organization is compliant by the March 1, 2019, effective date. In addition, if you contract with an outsourced cash vault provider to prepare your currency deposits, it is your responsibility to provide them with this information and ensure their compliance with your deposits.
Specifically, please review the following CSMOP sections:
To illustrate the revised depositing procedures defined in CSMOP section 4.2, an updated Deposit Visual Reference Guide (DVRG) (PDF) is also available on FRBservices.org. The following sections have been modified:
In particular, the section on Preparing Bundles has been expanded with clarification on required practices and examples of incorrect bundling, as shown below.
For questions related to these changes, contact your Federal Reserve Bank Cash Services department.