The Board establishes prices for Reserve Bank services, pursuant to section 11A of the Federal Reserve Act. In certain circumstances, the Board has delegated its authority in this area to the Director of Reserve Bank Operations and Payment Systems (RBOPS) or to the Financial Services Policy Committee (FSPC). The FSPC may further delegate its authority to the appropriate financial services product director. Four categories of price and service change proposals have been defined: non-routine, routine, accelerated, and pre-approved. The product director will inform the Director of RBOPS of a proposed change to a nationally priced service before approval. The Director of RBOPS will determine the classification of the proposal.

Non-routine Proposals/Annual Repricing

1. A non-routine proposal would introduce a new service line, a new product within an existing service line that would significantly modify the service line, or a new fee structure for an existing service line. In addition, proposals to test a new product or service on a pilot basis, before it is implemented more broadly, generally would be considered non-routine. Proposals expected to generate significant comment from service users or other service providers or those with policy or significant competitive implications also should be considered non-routine. The annual repricing of products is categorized as non-routine.
2. Depending on the significance of the proposed change(s), the Board or the Director of RBOPS, under delegated authority, is responsible for approving non-routine proposals. Non-routine proposals should be submitted by the appropriate Reserve Bank product director to the Director of RBOPS in sufficient time to permit thorough review. Reserve Banks are encouraged to provide Board staff and the product office with proposals in draft form to expedite the review and approval process for the final proposal. The product director will submit non-routine proposals to the Board for approval after obtaining endorsement by the FSPC.
3. On receipt of complete documentation and recommendation for action for a non-routine proposal from the appropriate product office, Board staff will notify the product office of the anticipated time frame for review and final action. For proposals requiring Board approval, Board staff will prepare all memoranda to the Committee on Federal Reserve Bank Affairs (BAC) and the Board, summaries of comments, and Board press releases, and will present the staff's recommendation to the BAC and the Board, with input from product office and Reserve Bank staff, as appropriate. Staff memoranda to the BAC and the Board will indicate whether the product director concurs with the staff's recommendation and, if not, will explain the product director's views. The Board will provide a copy of the approval letter and accompanying Board staff analysis to the FSPC Chair and to the appropriate product director.

4. A routine proposal is a proposed change to a nationally or locally priced service that is not subject to paragraph 1 or 10. A routine proposal would only moderately affect existing product offerings, would be expected to result in minimal reaction from users and other service providers, pertains to a change that does not have policy or significant competitive implications, enables the changed product to recover incremental costs, and does not substantially change budgeted service revenues in the first year of introduction.
5. The FSPC has authority to approve routine proposals and has responsibility to ensure that the requested changes are consistent with the Board's pricing principles, supportive of the System's overall strategic direction, and include supporting, defensible rationale to justify the change. The FSPC may delegate this authority to the appropriate Reserve Bank product director. Routine proposals should be submitted to the product director, with a copy to the Director of RBOPS at least six weeks before the planned implementation date. Reserve Banks are encouraged to give the product office draft proposals to expedite the review and approval process for the final proposal. If Board staff believes that the proposal should be classified as non-routine, the Director of RBOPS must notify the product director no later than five business days after receiving the final proposal.
6. The product director generally will complete the review and approval process within ten business days of receipt, unless s/he needs additional information to complete the review. The product director will provide a copy of the approval letter and accompanying product office analysis to the Director of RBOPS.

7. The FSPC may designate certain routine proposals as qualifying for accelerated review and approval. The FSPC may delegate this authority to the appropriate Reserve Bank product director. Accelerated proposals generally are expected to result in no adverse reaction from the private sector. Where applicable, these proposals must comply with the most recent pricing guidelines issued for the service.
8. The FSPC has authority to approve accelerated proposals and has responsibility to ensure that the requested changes are consistent with the Board's pricing principles, supportive of the System's overall strategic direction, and include a supporting, defensible rationale to justify the change. The FSPC may delegate this authority to the appropriate Reserve Bank product director. Accelerated proposals should be submitted to the product director, with a copy to the Director of RBOPS at least five weeks before the planned implementation date. If Board staff believes that the proposal is actually non-routine or routine, the Director of RBOPS must notify the product director no later than three business days after receiving the final proposal.
9. The product director generally will complete the review and approval process within five business days of receipt, unless s/he needs additional information to complete the review. The product director will provide a copy of the approval letter to the division director.

10. The Board has authorized Reserve Banks to make certain minor price and service level changes within specified parameters without prior Board review. These changes include registered mail deliveries of cash shipments and certain minor modifications to the check collection service.