Deadline Extended for Comment on Potential Longer-term Direction of the Payments System Risk Policy

Federal Reserve Bankll Kof DallasHELEN E. HOLCOMBDALLAS, TEXASFIRST VICE PRESIDENT AND October 17, 2001CHIEF OPERATING OFFICER 75265-5906Notice 01-77TO: The Chief Operating Officer of eachfinancial institution and others concernedin the Eleventh Federal Reserve DistrictSUBJECTDeadline Extended for Comment on PotentialLonger-term Direction of the Payments System Risk PolicyDETAILSThe Board of Governors of the Federal Reserve System has extended the deadline for itsrequest for comment on the potential longer-term direction of the payments system risk policy. Thelonger-term policy options include the following:1) Lowering single-day net debit cap levels to approximately the current two-week averagecap levels and eliminating the two-week average net debit cap;2) Implementing a two-tiered pricing regime for daylight overdrafts such that institutionspledging collateral to the Reserve Banks pay a lower fee on their collateralized daylightoverdrafts than on their uncollateralized daylight overdrafts; and3) Monitoring in real time all payments with settlement-day finality and rejecting thosepayments that would cause an institution to exceed its net debit cap or daylight overdraftcapacity level.The Board must receive comments by November 16, 2001. Please address comments toJennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and CStreets, N.W., Washington, DC 20551. Also, you may mail comments electronically ...