Start Printed Page 70046
Board of Governors of the Federal Reserve System.
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) to eliminate certain posting rules to conform with changes to the Treasury Tax and Loan (TT&L) program.
Effective Date: November 22, 2013.
Start Further Info
FOR FURTHER INFORMATION CONTACT:
Jeffrey D. Walker, Assistant Director (202-721-4559) or Michelle D. Olivier, Financial Services Analyst (202-452-2404), Division of Reserve Bank Operations and Payment Systems. For users of Telecommunications Device for the Deaf (TDD) only, please call 202-263-4869.
End Further Info
Start Supplemental Information
The Board's PSR policy establishes the procedures, referred to as posting rules, for the settlement of debits and credits to institutions' Federal Reserve accounts for different payment types.
The application of these posting rules determines an institution's intraday account balance and whether it has incurred a negative balance (daylight overdraft).
The Board is removing the posting rules for Electronic Federal Tax Payment System (EFTPS) investments from ACH credit and debit transactions, which currently post at 8:30 a.m. and 11:00 a.m. eastern time, respectively. This change conforms with the U.S. Department of Treasury's decision to eliminate retained electronic tax deposits from its TT&L program effective January 1, 2012. Beginning in January 2012, electronic tax deposits were no longer deposited in the TT&L main account balances of retainer and investor depositaries, and all retained tax deposits held in these accounts were withdrawn by December 30, 2011.
Institutions' Federal Reserve account balances are not affected by the removal of these posting rules because all EFTPS investments from ACH credit and debit transactions have ceased.
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” and “Post at 11:00 a.m. Eastern time,” is amended to remove the posting rules for EFTPS investments from ACH credit and debit transactions as follows:
Procedures for measuring daylight overdrafts 
Post at 8:30 a.m. Eastern time:
± Term deposit maturities and accrued interest
± Government and commercial ACH credit transactions 
+ Treasury checks, postal money orders, local Federal Reserve Bank checks, and savings bond redemptions in separately sorted deposits; these items must be deposited by 12:01 a.m. local time or the local deposit deadline, whichever is later
+ Advance-notice Treasury investments
− Penalty assessments for tax payments from the Treasury Investment Program (TIP).
Post at 11:00 a.m. Eastern time:
± ACH debit transactions
* * * * *
End Supplemental Information
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, November 19, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013-28028 Filed 11-21-13; 8:45 am]
BILLING CODE 6210-01-P