WASHINGTON — The Federal Reserve Board proposed a new set of rules Tuesday dealing with how funds transfers will be carried out over the central bank’s real-time payments service that is expected to become available in 2023.
The Fed said the measure governing transfers on the new FedNow service would have similarities with the existing framework for the current Fedwire Funds Service.
The proposal includes terms and conditions for how the Fed’s regional banks will process transfers over FedNow, and authorizes the regional banks to provide more detailed terms and conditions. The rule would also include a provision requiring FedNow participants that serve as the beneficiary’s bank to make funds available immediately, among other changes.
In 2019, the Fed announced plans to create FedNow following the launch of other real-time payments platforms, such as the RTP network developed by The Clearing House.
“The FedNow Service will operate alongside similar services provided by the private sector to provide core infrastructure supporting instant payments in the United States,” the Fed said in the proposal unveiled Tuesday. The public will have 60 days to comment from when the proposal is published in the Federal Register.
