When autocomplete results are available use up and down arrows to review and enter to select.
The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.
Oct. 08, 2024
ICBA expressed support for a Bureau of the Fiscal Service proposal to adopt the 2022, 2023, and 2024 amendments to the Nacha rules.
Details: In a comment letter to the bureau, ICBA noted that community banks operate more efficiently when the public and private sectors adhere to a single set of Automated Clearing House operating rules. The federal government is a large participant in the ACH system, from disbursing salaries for military personnel to the direct deposit of Social Security.
Highlights:
ICBA backed the adoption of the 2024 risk-management supplement, noting that these rules went into effect in the private sector this month.
Fiscal Service proposed eliminating an exemption for Treasury transactions from the Nacha “two-day rule,” which would be in line with standard practice in the private sector.
While the government’s exception to the two-day rule was instrumental in growing ACH transactions over the past 50 years, ICBA said it is delighted the Treasury Department no longer believes the exemption provides a material benefit to the government.