CUNA, the Credit Union National Association, is urging the Federal Reserve to throw more resources toward speeding up the development and launch of the FedNow real-time network. Many credit unions object to joining The Clearing House’s RTP network, not because of its capabilities but because its ownership is comprised of large banks. As RTP, launched in 2017, continues to expand in transactions processed and clients, credit unions eager to join the real-time payments bandwagon want to start catching up.
Here’s the letter that CUNA sent to the Fed.
This is what CUNA had to say about the matter on their website, CUNA.org:
CUNA supports the Federal Reserve’s ongoing development of the FedNow service, a 24x7x365 real-time payments network, it wrote the agency this week. CUNA filed its comments in response to potential modifications to Federal Reserve policy on payment system risk to expand access to collateralized intraday credit, clarify access to uncollateralized credit, and support the deployment of he FedNow service.
“Credit unions look forward to working with Board staff as the network is developed. We encourage the Board to use all the resources at its disposal to speed up development of FedNow so that new products and services can be brought to the market,” the letter reads. “We also look forward to continuing to work with the Board as it proposes changes to regulations and operating procedures to implement FedNow and the FedNow Liquidity Management Tool (LMT).”
CUNA also encourages the Fed to:
Continue to work with credit unions and other financial institutions as adjustments may be necessary as FedNow becomes operational.
Revise the daylight overdraft and the penalty fee calculations for all institutions in order to reflect the 24-hour business day in a manner that results in no overall increase in fees.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group