September 30, 2010
Federal Reserve announces implementation date for changes to the Payment System Risk Policy
For immediate release
The Federal Reserve Board on Thursday announced that it will implement changes to its Payment System Risk (PSR) policy on March 24, 2011. The Board approved these revisions in late 2008 for implementation approximately two years later, following substantial changes to the Reserve Banks' credit risk management infrastructure.
The revised PSR policy explicitly recognizes the Reserve Banks' role in providing intraday credit to healthy depository institutions and establishes a zero fee for collateralized daylight overdrafts, a 50 basis point (annual rate) charge for uncollateralized daylight overdrafts, and a biweekly daylight overdraft fee waiver of $150. In addition, the Board changed other elements of the PSR policy dealing with daylight overdrafts, including adjusting net debit caps, streamlining max cap procedures for certain foreign banking organizations (implemented in March 2009), eliminating the deductible for daylight overdraft fees, and increasing the penalty daylight overdraft fee for institutions ineligible for intraday credit to 150 basis points (annual rate).
The Board encourages depository institutions to review documents explaining the implementation of the revised PSR policy. Versions of these documents that have been updated with information related to the revised policy will be available later this year on the Board's website at http://www.federalreserve.gov/paymentsystems/psr_relpolicies.htm and on the discount window and PSR website at http://www.frbdiscountwindow.org.
The Board's notice is attached.