Removing Barriers Blog

CUNA Files Comment Letter with Fed for Faster Payments Proposal
Posted December 14, 2018 by Chandler Schuette

CUNA filed a comment letter with the Board of Governors of the Federal Reserve System (Fed) on their request for comment regarding potential Fed actions to support interbank settlement of faster payments.  Simply put, this is a request where the Fed asked if should develop a real-time payments rail and liquidity tool along with some questions on these two issue.  CUNA supports the Fed moving forward on developing a real-time payments rail and liquidity tool.  The bullets below summarized CUNA's comments to the Fed.

     -CUNA supports the Fed developing a real-time payments network;

     -The Fed’s real-time payments network should be interoperable with private sector real-time payments rails;

     -The Fed should require all financial institutions to develop the capability to receive payments from the Fed’s real-time payments network;

     -The Fed should develop a liquidity management tool that is robust and can support other payments types such as automated clearing house (ACH);

     -The Fed should continue to develop and support legacy payments systems; and

     -The Fed should communicate a decision quickly on whether it will develop a real-time payments system and interoperability, as a lack of clarity risks freezing the market.

CUNA has long asked the Fed to consider developing a real-time payments rail.  This position was reflected in the April 18, 2017 letter sent jointly by CUNA, the National Association of Federal Credit Unions (NAFCU) and the Independent Community Bankers of America (ICBA) to key Fed leadership including then-Vice Chairman Powell and President and CEO of the Kansas City Federal Reserve Bank Esther George asking for the Fed to explore a role in providing and/or supporting faster payments for financial institutions.  We will continue to work with the Fed to ensure that credit unions have reasonable access and needs are considered by the Fed moving forward.