Fed Lets Banks Give Electronic Notice on Checks

The Federal Reserve Board on Wednesday said banks may inform customers of check-hold policies electronically, rather than on paper.

As long as the customer agrees and has the means to download or print it, an electronic notice of the bank's check availability schedule will satisfy Regulation CC. The Fed backed off a proposal, issued last June, to permit customers to request a paper copy of the disclosure.

The Fed's models showing how to write and present customer disclosures also were updated, and the agency urged banks to adopt the new models when reordering supplies.