Federal Reserve Policy on Payment System Risk; Procedures for Measuring Daylight Overdrafts, 47692-47694 [2016-17334]

Download as PDF ehiers on DSK5VPTVN1PROD with RULES 47692 Federal Register / Vol. 81, No. 141 / Friday, July 22, 2016 / Rules and Regulations parliamentarian for the Board and keeps permanent and complete records and minutes of the acts and proceedings of the Board. (3) Equal Employment and Inclusion Director. The Office of Equal Employment and Inclusion manages and directs the Agency-wide Diversity, Inclusion, and Equal Employment Opportunity Program for FCA and FCSIC. The office serves as the chief liaison with the Equal Employment Opportunity Commission and the Office of Personnel Management on all EEO, diversity, and inclusion issues. The office provides counsel and leadership to Agency management to carry out its continuing policy and program of nondiscrimination, affirmative action, and diversity. (4) Designated Agency Ethics Official. The Designated Agency Ethics Official is designated by the FCA Chairman to administer the provisions of title I of the Ethics in Government Act of 1978, as amended, to coordinate and manage FCA’s ethics program and to provide liaison to the Office of Government Ethics with regard to all aspects of FCA’s ethics program. (5) Office of Congressional and Public Affairs. The Office of Congressional and Public Affairs performs Congressional liaison duties and coordinates and disseminates Agency communications. (6) Office of Secondary Market Oversight. The Office of Secondary Market Oversight regulates and examines the Federal Agricultural Mortgage Corporation for safety and soundness and compliance with law and regulations. (7) Office of the Chief Operating Officer. The Chief Operating Officer has broad responsibility for planning, directing, and controlling the operations of the Offices of Management Services, Examination, Regulatory Policy, and General Counsel in accordance with the operating philosophy and policies of the FCA Board. (8) Office of Agency Services. The Office of Agency Services manages human capital and administrative services for the Agency. This includes providing the following services to the Agency: Staffing and placement, job evaluation, compensation and benefits, payroll administration, performance management and awards, employee relations, employee training and development, contracting, acquisitions, records and property management, supply services, agency purchase cards, design, publication, and mail service. (9) Office of the Chief Financial Officer. The Office of the Chief Financial Officer manages and delivers timely, accurate, and reliable financial VerDate Sep<11>2014 16:28 Jul 21, 2016 Jkt 238001 services to the Agency. The office establishes financial policies and procedures and oversees the formulation and execution of the Agency’s budget. The office reports periodically on the status of the Agency’s financial position, results of operations, and budgetary resources. It also oversees the Agency’s travel management, internal controls, and personnel security programs. (10) Office of Regulatory Policy. The Office of Regulatory Policy develops policies and regulations for the FCA Board’s consideration; evaluates regulatory and statutory prior approvals; manages the Agency’s chartering activities; and analyzes policy and strategic risks to the System. (11) Office of Examination. The Office of Examination evaluates the safety and soundness of FCS institutions and their compliance with law and regulations and manages FCA’s enforcement and supervision functions. (12) Office of Information Technology. The Office of Information Technology manages and delivers the Agency’s information technology, data analysis infrastructure, and the security supporting Agency technology resources. (13) Office of General Counsel. The Office of General Counsel provides legal advice and services to the FCA Chairman, the FCA Board, and Agency staff. (b) Additional information. You may obtain more information on the FCA’s organization by visiting our Web site at http://www.fca.gov. You may also contact the Office of Congressional and Public Affairs: (1) In writing at FCA, 1501 Farm Credit Drive, McLean, Virginia 22102– 5090; (2) By email at info-line@fca.gov; or (3) By telephone at (703) 883–4056. PART 602—RELEASING INFORMATION 4. The authority citation for part 602 continues to read as follows: Authority: Secs. 5.9, 5.17, 5.59 of the Farm Credit Act (12 U.S.C. 2243, 2252, 2277a–8); 5 U.S.C. 301, 552; 12 U.S.C. 1821(t); 52 FR 10012; E.O. 12600; 52 FR 23781, 3 CFR 1987, p. 235. [Amended] 5. Amend § 602.8 as follows: a. In the second sentence of paragraph (a), by removing the words ‘‘Office of Management Services (OMS)’’ and adding in their place the words ‘‘Office of Agency Services (OAS).’’ ■ b. In paragraphs (b) and (c), by removing the abbreviation ‘‘OMS’’ and ■ ■ PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 § 602.25 [Amended] 6. Amend § 602.25 by removing the words ‘‘Regulation and Policy Division, Office of Policy and Analysis’’ and adding in their place the words ‘‘Office of Regulatory Policy.’’ ■ PART 603—PRIVACY ACT REGULATIONS 7. The authority citation for part 603 continues to read as follows: ■ Authority: Secs. 5.9, 5.17 of the Farm Credit Act (12 U.S.C. 2243, 2252); 5 U.S.C. app. 3, 5 U.S.C. 552a(j)(2) and (k)(2). § 603.340 [Amended] 8. Amend § 603.340 in paragraphs (a) and (b) by removing the words ‘‘Office of Management Services’’ and adding in their place the words ‘‘Office of Agency Services’’ each place they appear. ■ PART 606—ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE FARM CREDIT ADMINISTRATION 9. The authority citation for part 606 continues to read as follows: ■ Authority: 29 U.S.C. 794. § 606.670 [Amended] 10. Amend § 606.670 in paragraph (c) by removing the words ‘‘Office of Management Services’’ and adding in their place the words ‘‘Office of Agency Services.’’ ■ Dated: July 13, 2016. Dale L. Aultman, Secretary, Farm Credit Administration Board. [FR Doc. 2016–16962 Filed 7–21–16; 8:45 am] BILLING CODE 6705–01–P FEDERAL RESERVE SYSTEM ■ § 602.8 adding in its place the abbreviation ‘‘OAS’’ each place it appears. 12 CFR Chapter II [Docket No. OP–1544] Federal Reserve Policy on Payment System Risk; Procedures for Measuring Daylight Overdrafts Board of Governors of the Federal Reserve System. ACTION: Policy statement. AGENCY: The Board of Governors of the Federal Reserve System (Board) has revised part II of the Federal Reserve Policy on Payment System Risk (PSR policy) related to the procedures for measuring balances intraday in institutions’ accounts at the Federal SUMMARY: E:\FR\FM\22JYR1.SGM 22JYR1 Federal Register / Vol. 81, No. 141 / Friday, July 22, 2016 / Rules and Regulations Reserve Banks (Reserve Banks) to conform with enhancements to the Reserve Banks’ same-day automated clearinghouse (ACH) service previously approved by the Board. DATES: Effective Date: September 23, 2016. FOR FURTHER INFORMATION CONTACT: Jeffrey D. Walker, Assistant Director (202–721–4559), Jason Hinkle, Manager, Financial Risk Management (202–912– 7805), or Michelle D. Olivier, Senior Financial Services Analyst (202–452– 2404), Division of Reserve Bank Operations and Payment Systems, Board of Governors of the Federal Reserve System; for users of Telecommunications Device for the Deaf (TDD) only, contact 202/263–4869. SUPPLEMENTARY INFORMATION: Background ehiers on DSK5VPTVN1PROD with RULES The Board’s PSR policy establishes the procedures, referred to as posting rules, for the settlement of credits and debits to institutions’ Federal Reserve accounts for different payment types.1 The application of these posting rules determines an institution’s intraday account balance and whether it has incurred a negative balance (daylight overdraft). As announced on September 23, 2015, the Board approved enhancements to the Reserve Banks’ FedACH® SameDay Service (FedACH SameDay Service) effective September, 23, 2016.2 The enhancements are intended to align the Reserve Banks’ existing opt-in same-day ACH service with amendments to NACHA’s Operating Rules and Guidelines.3 Under the newly enhanced Reserve Bank service, all receiving depository financial institutions will be required to participate in same-day ACH, and originating depository financial institutions will be required to pay a fee to receiving depository financial institutions for each same-day ACH forward transaction. The NACHA amendments, as incorporated into the Reserve Bank Operating Circulars, will become effective in multiple phases, beginning with same-day credit and return transactions this September and 1 The Board’s PSR policy is available at www.federalreserve.gov/paymentsystems/psr_ policy.htm. 2 80 FR 58248 (Sep. 28, 2015). 3 NACHA, whose membership consists of insured financial institutions and regional payment associations, establishes network-wide ACH rules through its Operating Rules & Guidelines. As an ACH operator, the Reserve Banks, through Operating Circular 4, incorporate NACHA’s Operating Rules & Guidelines as rules that govern clearing and settlement of commercial ACH items by the Reserve Banks, except for those provisions specifically excluded in the Operating Circular. VerDate Sep<11>2014 14:57 Jul 21, 2016 Jkt 238001 followed by same-day debit transactions in September 2017. Upon implementation of the first phase, the Reserve Banks’ current opt-in same-day ACH service will cease to exist and will be supplanted by the newly-enhanced same-day service. The PSR policy’s posting rules for forward and return same-day ACH transactions are being updated to conform to the Reserve Banks’ new FedACH SameDay Service, effective September 23, 2016. Under the Reserve Banks’ current same-day ACH service, credits and debits for forward same-day ACH transactions post at 5:00 p.m.4 Beginning September 23, 2016, credits and debits for same-day ACH credit transactions will post at 1:00 p.m. or 5:00 p.m., depending on when the ACH file is received by the Reserve Banks for processing. Forward ACH debit transactions will be eligible to settle same-day beginning September 15, 2017, as part of the implementation of the second phase of the NACHA rule amendments, and credits and debits for same-day ACH debit transactions will post according to the same posting rules as same-day ACH credit transactions.5 The posting of future-dated ACH forward transactions will not be affected, and credits and debits for these transactions will continue to post at 8:30 a.m. on the effective settlement date. The approved enhancements effective this September also alter the settlement of ACH return items processed by the Reserve Banks. Under the current posting rules, credits and debits for returns of future-dated and same-day ACH forward items post either at 8:30 a.m. or in the afternoon at 5:00 p.m. and 5:30 p.m., respectively, with the specific posting time determined by when the item is received by the Reserve Banks. Effective September 23, 2016, all ACH return items, regardless of whether the associated forward item was futuredated or same-day, will post at the next available posting time or following the settlement of the associated forward times are eastern time. to the Reserve Banks’ same-day ACH service will alter treatment of check truncation items that settle through FedACH. A check truncation item is a check that has been converted into an ACH debit entry for presentment and settlement over the ACH network based on an agreement between the collecting and paying banks. Under the current posting rules, check truncation transactions post at 5:00 p.m. on the current business day. Beginning September 23, 2016, check truncation transactions will post at the same time as other ACH debit transactions at 8:30 a.m. on the next business day and will post either next-day or same-day, as appropriate, beginning with phase two of the NACHA rule amendments. At this time, the Reserve Banks do not have any volume associated with check truncation items. PO 00000 4 All 5 Enhancements Frm 00005 Fmt 4700 Sfmt 4700 47693 transaction. Thus, credits and debits for return items will post at 8:30 a.m., 1:00 p.m., 5:00 p.m., or 5:30 p.m., with the specific posting time determined by when the item is received by the Reserve Banks.6 Policy on Payment System Risk The Federal Reserve Policy on Payment System Risk, section II.A, under the heading ‘‘Procedures for Measuring Daylight Overdrafts’’ and the subheadings ‘‘Post at 8:30 a.m. eastern time,’’ ‘‘Post at 1:00 p.m. eastern time,’’ ‘‘Post at 5:00 p.m. eastern time,’’ and ‘‘Post at 5:30 p.m. eastern time,’’ is amended as follows: Post at 8:30 a.m. eastern time: +/¥ Term deposit maturities and accrued interest +/¥ Government and commercial ACH transactions, including return items 7 +/¥ Commercial check transactions, including returned checks 8 + Treasury checks, postal money orders, local Federal Reserve Bank checks, and savings bond redemptions in separately sorted deposits; these items must be deposited by the latest applicable deposit deadline preceding the posting time + Advance-notice Treasury investments 6 Paper returns, FedLine Web returns, paper notifications of change (NOCs) and FedLine Web NOCs will only be processed twice daily at 2:15 a.m. and 2:45 p.m. As such, these transactions will post at 8:30 a.m. or 5:00 p.m., depending on when the item is received by the Reserve Banks. 7 Institutions that are monitored in real time must fund the total amount of their commercial ACH credit originations in order for the transactions to be processed. If the Federal Reserve receives commercial ACH credit transactions from institutions monitored in real time after the scheduled close of the Fedwire Funds Service, these transactions will be processed at 12:30 a.m. the next business day, or by the ACH deposit deadline, whichever is earlier. The Account Balance Monitoring System provides intraday account information to the Reserve Banks and institutions and is used primarily to give authorized Reserve Bank personnel a mechanism to control and monitor account activity for selected institutions. For more information on ACH transaction processing, refer to the ACH Settlement Day Finality Guide available through the Federal Reserve Financial Services Web site at http:// www.frbservices.org. The federal government will not participate in the same-day ACH upon initial implementation in September 2016. ACH forward transactions originated or received by the federal government will not be eligible for same-day settlement and will settle on the next business day, or on a future date as indicated by the effective settlement date. 8 For the three commercial check transaction posting times, the Reserve Banks will post credits and debits to institutions’ accounts for checks deposited and presented, respectively, at least 30 minutes before the posting time. E:\FR\FM\22JYR1.SGM 22JYR1 47694 Federal Register / Vol. 81, No. 141 / Friday, July 22, 2016 / Rules and Regulations - Penalty assessments for tax payments from the Treasury Investment Program (TIP) 9 Post by 1:00 p.m. eastern time: +/¥ Commercial check transactions, including returned checks +/¥ FedACH SameDay Service transactions, including return items + Same-day Treasury investments Post at 5:00 p.m. eastern time: +/¥ FedACH SameDay Service transactions, including return items 10 + Treasury checks, postal money orders, and savings bond redemptions in separately sorted deposits; these items must be deposited by the latest applicable deposit deadline preceding the posting time + Local Federal Reserve Bank checks; these items must be presented before 3:00 p.m. eastern time Post at 5:30 p.m. eastern time: +/¥ FedACH SameDay Service return transactions +/¥ Commercial check transactions, including returned checks * * * * * By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Reserve Bank Operations and Payment Systems under delegated authority, July 18, 2016. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2016–17334 Filed 7–21–16; 8:45 am] BILLING CODE 6210–01–P We are adopting a new airworthiness directive (AD) for all M7 Aerospace LLC Models SA26–AT, SA26–T, SA226–AT, SA226–T, SA226– T(B), SA226–TC, SA227–AC (C–26A), SA227–AT, SA227–BC (C–26A), SA227–CC, SA227–DC (C–26B), and SA227–TT airplanes. This AD was prompted by reports of multiple cracks in the steel horizontal tube of the cockpit control column. This AD requires inspection of the cockpit control column horizontal tube for cracks and repair or replacement of the cockpit control column as necessary. We are issuing this AD to correct the unsafe condition on these products. SUMMARY: This AD is effective August 26, 2016. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of August 26, 2016. DATES: For service information identified in this final rule, contact M7 Aerospace LLC, 10823 NE Entrance Road, San Antonio, Texas 78216; phone: (210) 824–9421; fax: (210) 804–7766; Internet: http://www.elbitsystemsus.com; email: MetroTech@ M7Aerospace.com. For information on the availability of this material at the FAA, call 816–329–4148. It is also available on the internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2016– 5431. ADDRESSES: Discussion We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to all M7 Aerospace LLC Models SA26–AT, SA26–T, SA226–AT, SA226– T, SA226–T(B), SA226–TC, SA227–AC (C–26A), SA227–AT, SA227–BC (C– 26A), SA227–CC, SA227–DC (C–26B), and SA227–TT airplanes. The NPRM published in the Federal Register on April 1, 2016 (81 FR 18804). The NPRM was prompted by reports of multiple cracks in the cockpit control column horizontal tube at the corners of the access panel cutout, at the pulley bolt welds, and at the elevator arm weld in the steel horizontal tube of the control column on M7 Aerospace SA26, SA226, and SA227 airplanes. The NPRM proposed to require inspection of the cockpit control column horizontal tube for cracks and repair or replacement of the cockpit control column as necessary. This condition, if not corrected, could result in partial or complete control column failure with partial or complete loss of pitch and/or roll control. We are issuing this AD to correct the unsafe condition on these products. Comments We gave the public the opportunity to participate in developing this AD. The following presents the comment received on the NPRM (81 FR 18804, April 1, 2016) and the FAA’s response to the comment. Examining the AD Docket DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2016–5431; Directorate Identifier 2015–CE–044–AD; Amendment 39–18593; AD 2016–15–02] RIN 2120–AA64 Airworthiness Directives; M7 Aerospace LLC Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Final rule. ehiers on DSK5VPTVN1PROD with RULES AGENCY: 9 The Reserve Banks will identify and notify institutions with Treasury-authorized penalties on Thursdays. In the event that Thursday is a holiday, the Reserve Banks will identify and notify institutions with Treasury-authorized penalties on the following business day. Penalties will then be posted on the business day following notification. 10 Paper returns, FedLine Web returns, paper notifications of change (NOCs), and FedLine Web NOCS will only post at 8:30 a.m. and 5:00 p.m., depending on when the item is received by the Reserve Banks. VerDate Sep<11>2014 14:57 Jul 21, 2016 Jkt 238001 Request for Previously Done Credit You may examine the AD docket on the Internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2016– 5431; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The address for the Docket Office (phone: 800–647–5527) is Document Management Facility, U.S. Department of Transportation, Docket Operations, M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590. Michael O’Brien at Bearskin Airlines commented they had been complying with this AD by accomplishing the service bulletins that are listed in the proposed AD. He asked if it would be acceptable to just accomplish a technical records research to see when the required actions were last done. We agree that credit should be given for actions previously done with the service bulletins called out in the NPRM. The NPRM already allows for this with the phrase ‘‘unless already done’’ in paragraphs (g)(1) and (2) of the NPRM. Because the requested change is already part of this AD, we have not changed the final rule AD action based on this comment. FOR FURTHER INFORMATION CONTACT: Conclusion Andrew McAnaul, Aerospace Engineer, FAA, ASW–143 (c/o San Antonio MIDO), 10100 Reunion Place, Suite 650, San Antonio, Texas 78216; phone: (210) 308–3365; fax: (210) 308–3370; email: andrew.mcanaul@faa.gov. SUPPLEMENTARY INFORMATION: PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 We reviewed the relevant data, considered the comment received, and determined that air safety and the public interest require adopting this AD as proposed except for minor editorial changes. We have determined that these minor changes: E:\FR\FM\22JYR1.SGM 22JYR1

Agencies

[Federal Register Volume 81, Number 141 (Friday, July 22, 2016)]
[Rules and Regulations]
[Pages 47692-47694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17334]


=======================================================================
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FEDERAL RESERVE SYSTEM

12 CFR Chapter II

[Docket No. OP-1544]


Federal Reserve Policy on Payment System Risk; Procedures for 
Measuring Daylight Overdrafts

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Policy statement.

-----------------------------------------------------------------------

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
has revised part II of the Federal Reserve Policy on Payment System 
Risk (PSR policy) related to the procedures for measuring balances 
intraday in institutions' accounts at the Federal

[[Page 47693]]

Reserve Banks (Reserve Banks) to conform with enhancements to the 
Reserve Banks' same-day automated clearinghouse (ACH) service 
previously approved by the Board.

DATES: Effective Date: September 23, 2016.

FOR FURTHER INFORMATION CONTACT: Jeffrey D. Walker, Assistant Director 
(202-721-4559), Jason Hinkle, Manager, Financial Risk Management (202-
912-7805), or Michelle D. Olivier, Senior Financial Services Analyst 
(202-452-2404), Division of Reserve Bank Operations and Payment 
Systems, Board of Governors of the Federal Reserve System; for users of 
Telecommunications Device for the Deaf (TDD) only, contact 202/263-
4869.

SUPPLEMENTARY INFORMATION:

Background

    The Board's PSR policy establishes the procedures, referred to as 
posting rules, for the settlement of credits and debits to 
institutions' Federal Reserve accounts for different payment types.\1\ 
The application of these posting rules determines an institution's 
intraday account balance and whether it has incurred a negative balance 
(daylight overdraft).
---------------------------------------------------------------------------

    \1\ The Board's PSR policy is available at 
www.federalreserve.gov/paymentsystems/psr_policy.htm.
---------------------------------------------------------------------------

    As announced on September 23, 2015, the Board approved enhancements 
to the Reserve Banks' FedACH[supreg] SameDay Service (FedACH SameDay 
Service) effective September, 23, 2016.\2\ The enhancements are 
intended to align the Reserve Banks' existing opt-in same-day ACH 
service with amendments to NACHA's Operating Rules and Guidelines.\3\ 
Under the newly enhanced Reserve Bank service, all receiving depository 
financial institutions will be required to participate in same-day ACH, 
and originating depository financial institutions will be required to 
pay a fee to receiving depository financial institutions for each same-
day ACH forward transaction. The NACHA amendments, as incorporated into 
the Reserve Bank Operating Circulars, will become effective in multiple 
phases, beginning with same-day credit and return transactions this 
September and followed by same-day debit transactions in September 
2017. Upon implementation of the first phase, the Reserve Banks' 
current opt-in same-day ACH service will cease to exist and will be 
supplanted by the newly-enhanced same-day service. The PSR policy's 
posting rules for forward and return same-day ACH transactions are 
being updated to conform to the Reserve Banks' new FedACH SameDay 
Service, effective September 23, 2016.
---------------------------------------------------------------------------

    \2\ 80 FR 58248 (Sep. 28, 2015).
    \3\ NACHA, whose membership consists of insured financial 
institutions and regional payment associations, establishes network-
wide ACH rules through its Operating Rules & Guidelines. As an ACH 
operator, the Reserve Banks, through Operating Circular 4, 
incorporate NACHA's Operating Rules & Guidelines as rules that 
govern clearing and settlement of commercial ACH items by the 
Reserve Banks, except for those provisions specifically excluded in 
the Operating Circular.
---------------------------------------------------------------------------

    Under the Reserve Banks' current same-day ACH service, credits and 
debits for forward same-day ACH transactions post at 5:00 p.m.\4\ 
Beginning September 23, 2016, credits and debits for same-day ACH 
credit transactions will post at 1:00 p.m. or 5:00 p.m., depending on 
when the ACH file is received by the Reserve Banks for processing. 
Forward ACH debit transactions will be eligible to settle same-day 
beginning September 15, 2017, as part of the implementation of the 
second phase of the NACHA rule amendments, and credits and debits for 
same-day ACH debit transactions will post according to the same posting 
rules as same-day ACH credit transactions.\5\ The posting of future-
dated ACH forward transactions will not be affected, and credits and 
debits for these transactions will continue to post at 8:30 a.m. on the 
effective settlement date.
---------------------------------------------------------------------------

    \4\ All times are eastern time.
    \5\ Enhancements to the Reserve Banks' same-day ACH service will 
alter treatment of check truncation items that settle through 
FedACH. A check truncation item is a check that has been converted 
into an ACH debit entry for presentment and settlement over the ACH 
network based on an agreement between the collecting and paying 
banks. Under the current posting rules, check truncation 
transactions post at 5:00 p.m. on the current business day. 
Beginning September 23, 2016, check truncation transactions will 
post at the same time as other ACH debit transactions at 8:30 a.m. 
on the next business day and will post either next-day or same-day, 
as appropriate, beginning with phase two of the NACHA rule 
amendments. At this time, the Reserve Banks do not have any volume 
associated with check truncation items.
---------------------------------------------------------------------------

    The approved enhancements effective this September also alter the 
settlement of ACH return items processed by the Reserve Banks. Under 
the current posting rules, credits and debits for returns of future-
dated and same-day ACH forward items post either at 8:30 a.m. or in the 
afternoon at 5:00 p.m. and 5:30 p.m., respectively, with the specific 
posting time determined by when the item is received by the Reserve 
Banks. Effective September 23, 2016, all ACH return items, regardless 
of whether the associated forward item was future-dated or same-day, 
will post at the next available posting time or following the 
settlement of the associated forward transaction. Thus, credits and 
debits for return items will post at 8:30 a.m., 1:00 p.m., 5:00 p.m., 
or 5:30 p.m., with the specific posting time determined by when the 
item is received by the Reserve Banks.\6\
---------------------------------------------------------------------------

    \6\ Paper returns, FedLine Web returns, paper notifications of 
change (NOCs) and FedLine Web NOCs will only be processed twice 
daily at 2:15 a.m. and 2:45 p.m. As such, these transactions will 
post at 8:30 a.m. or 5:00 p.m., depending on when the item is 
received by the Reserve Banks.
---------------------------------------------------------------------------

Policy on Payment System Risk

    The Federal Reserve Policy on Payment System Risk, section II.A, 
under the heading ``Procedures for Measuring Daylight Overdrafts'' and 
the subheadings ``Post at 8:30 a.m. eastern time,'' ``Post at 1:00 p.m. 
eastern time,'' ``Post at 5:00 p.m. eastern time,'' and ``Post at 5:30 
p.m. eastern time,'' is amended as follows:
    Post at 8:30 a.m. eastern time:

+/- Term deposit maturities and accrued interest
+/- Government and commercial ACH transactions, including return items 
\7\
---------------------------------------------------------------------------

    \7\ Institutions that are monitored in real time must fund the 
total amount of their commercial ACH credit originations in order 
for the transactions to be processed. If the Federal Reserve 
receives commercial ACH credit transactions from institutions 
monitored in real time after the scheduled close of the Fedwire 
Funds Service, these transactions will be processed at 12:30 a.m. 
the next business day, or by the ACH deposit deadline, whichever is 
earlier. The Account Balance Monitoring System provides intraday 
account information to the Reserve Banks and institutions and is 
used primarily to give authorized Reserve Bank personnel a mechanism 
to control and monitor account activity for selected institutions. 
For more information on ACH transaction processing, refer to the ACH 
Settlement Day Finality Guide available through the Federal Reserve 
Financial Services Web site at http://www.frbservices.org.
    The federal government will not participate in the same-day ACH 
upon initial implementation in September 2016. ACH forward 
transactions originated or received by the federal government will 
not be eligible for same-day settlement and will settle on the next 
business day, or on a future date as indicated by the effective 
settlement date.
---------------------------------------------------------------------------

+/- Commercial check transactions, including returned checks \8\
---------------------------------------------------------------------------

    \8\ For the three commercial check transaction posting times, 
the Reserve Banks will post credits and debits to institutions' 
accounts for checks deposited and presented, respectively, at least 
30 minutes before the posting time.
---------------------------------------------------------------------------

+ Treasury checks, postal money orders, local Federal Reserve Bank 
checks, and savings bond redemptions in separately sorted deposits; 
these items must be deposited by the latest applicable deposit deadline 
preceding the posting time
+ Advance-notice Treasury investments

[[Page 47694]]

- Penalty assessments for tax payments from the Treasury Investment 
Program (TIP) \9\

    \9\ The Reserve Banks will identify and notify institutions with 
Treasury-authorized penalties on Thursdays. In the event that 
Thursday is a holiday, the Reserve Banks will identify and notify 
institutions with Treasury-authorized penalties on the following 
business day. Penalties will then be posted on the business day 
following notification.

---------------------------------------------------------------------------
    Post by 1:00 p.m. eastern time:

+/- Commercial check transactions, including returned checks
+/- FedACH SameDay Service transactions, including return items
+ Same-day Treasury investments

    Post at 5:00 p.m. eastern time:

+/- FedACH SameDay Service transactions, including return items \10\
---------------------------------------------------------------------------

    \10\ Paper returns, FedLine Web returns, paper notifications of 
change (NOCs), and FedLine Web NOCS will only post at 8:30 a.m. and 
5:00 p.m., depending on when the item is received by the Reserve 
Banks.
---------------------------------------------------------------------------

+ Treasury checks, postal money orders, and savings bond redemptions in 
separately sorted deposits; these items must be deposited by the latest 
applicable deposit deadline preceding the posting time
+ Local Federal Reserve Bank checks; these items must be presented 
before 3:00 p.m. eastern time

    Post at 5:30 p.m. eastern time:

+/- FedACH SameDay Service return transactions
+/- Commercial check transactions, including returned checks
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of the Division of Reserve Bank 
Operations and Payment Systems under delegated authority, July 18, 
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-17334 Filed 7-21-16; 8:45 am]
BILLING CODE 6210-01-P