Transfer of Paper Check Processing from Atlanta FRB to Cleveland FRB Marks Beginning of New Funds Availability Era
January 21, 2010 at 2:38 am smalleybank Leave a comment
More banking operations are being shuttered in Atlanta. . . . And this time it’s not necessarily bad news.
The Board of Governors of the Federal Reserve System recently announced that check-processing operations at the Federal Reserve Bank of Atlanta would be transferred to the Federal Reserve Bank of Cleveland on February 27th of this year. The transfer marks the end of the era when paper checks were processed at locations scattered across the country. Instead, starting February 27th, all Reserve Banks will use only the head office of the Federal Reserve Bank of Cleveland for paper-check processing.
Along with the consolidation of paper-check processing, the Federal Reserve Board amended Regulation CC, effective February 27, to make the United States a single check-processing region. This amendment means that after February 27th all checks will be “local” for purposes of Regulation CC, meaning that depositary banks, barring an exception under amended Regulation CC , must make funds deposited by check available for withdrawal no later than the second business day after the banking day on which the check was deposited.
The payment system world is a little flatter each day.
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