WASHINGTON The Federal Reserve Board on Tuesday revised its staff commentary interpreting Regulation E, which governs electronic funds transfers.
The revisions to the commentary are meant to clarify the rules application to transactions in which a consumer allows a blank check to be used to initiate a direct debit from a checking account. The rule applies to both one-time withdrawals and recurring debits. The new staff commentary, which is available on the Feds Web site, also makes a number of technical amendments to the original rule.
The rule is effective March 15, but bank compliance is not mandatory until Jan. 1, 2002. It is expected to be published in the Federal Register soon.