Capital Briefs: Fed Lets Banks Use Electronic Disclosures

The Federal Reserve Board issued an interim rule Friday that would let banks deliver account statements and other mandatory disclosures electronically if the consumer agrees.

The interim rule, which goes into effect March 20, would not require financial institutions to provide paper copies of the disclosures. Separately, as part of an effort to revise rules for interbank check clearing, the Federal Reserve Board is considering a later deadline for checks that must receive same-day settlement.

Last week the Fed asked for comment on current rules, promulgated in 1994, which require depository institutions to make same-day settle payments on checks that are received by 8 a.m. from private-sector institutions. The agency is considering a later deadline to eliminate the advantage held by Federal Reserve banks, which are entitled to receive same-day settlement on checks they present by 2 p.m. The Fed is also reviewing whether the later deadline should be permitted only for checks that are electronically transmitted and whether banks have set proper delivery requirements on institutions that seek same-day settlement.