The public comment period on a proposed rule adding provisions governing funds transfers handled through the coming new FedNow Service of the Federal Reserve Banks was extended from Aug. 10 to Sept. 9 Tuesday by the Federal Reserve Board.
Expected to be available in 2023, FedNow is a new 24x7x365 service that will support instant payments in the United States. “The Board extended the comment period to allow interested persons more time to analyze the proposal and prepare their comments,” the Fed said in Tuesday’s announcement.
The Fed’s proposal, issued in June, would amend Regulation J to govern funds transfers through the Federal Reserve Banks’ new service by establishing a new subpart C. The proposal also includes revisions and clarifications to subpart B, governing the Fedwire Funds Service, to reflect the fact that the Reserve Banks will be operating a second funds transfer service; and makes technical corrections to subpart A, governing the check service.