District Circular Letters

February 24, 1999

BANKING SUPERVISION AND REGULATION:
ELECTRONIC RETURN OF UNPAID CHECKS

To All Depository Institutions
in the Twelfth Federal Reserve District

Proposal to Allow Flexibility Regarding Methods of Returning Unpaid Checks (Docket R-1034)

The Federal Reserve Board has requested comment on proposed changes to its Regulation CC, Availability of Funds and Collection of Checks, that would provide more flexibility to depository institutions to experiment with methods to return unpaid checks electronically.

The Board seeks to support development of new payment services and to take steps to remove any federal regulatory impediments to innovation in the payments area where appropriate. This proposal therefore presents options for amending Regulation CC and/or its Commentary to clarify the permissibility of notices in a check truncation environment instead of the return of the actual check.

Comment is requested by April 30, 1999.

Copies

Copies of the Board's notice (Docket R-1034) are available from our Corporate Services Department. To request copies to be sent via mail, please call (415) 974-2748. To request copies to be sent via fax, please call (415) 974-3333, and specify document number 4183.

For Additional Information

For additional information regarding Regulation CC, please contact our Law Department, at (415) 974-2256.

FEDERAL RESERVE BANK OF SAN FRANCISCO