The Federal Reserve Board has issued a final rule to amend the check collection and return provisions in subparts C and D of the regulation, but left unchanged, for now, subpart B, which covers the funds availability and funds availability disclosure requirements. Rulemaking on subpart B must be done in partnership with the CFPB.
In the final rule, the Board has modified the current check collection and return requirements to reflect the virtually all-electronic check collection and return environment and to encourage all depository banks to receive, and paying banks to send, returned checks electronically. The Board has retained, without change, the current same-day settlement rule for paper checks. The Board is also applying Regulation CC’s existing check warranties under subpart C to checks that are collected electronically, and in addition, has adopted new warranties and indemnities related to checks collected and returned electronically (including those deposited via remote deposit capture and mobile remote deposit capture) and to electronically-created items.
The final rule will be effective July 1, 2018.
Also changes were made to availability of US states or territories that are not in the contiguous 48. Adding an extra day for credit on items for Guam, Northern Marriana Islands, and American Somoa.
Good time to quickly review those procedures manuals and perhaps policies to assure they don’t contradict the revisions.