FedNowSM’s 2023 arrival is quickly approaching, and it seems as if things continue to get even quicker. In August, the Federal Reserve Banks announced that the timeframe for the FedNowSM Service launch has narrowed to mid-year 2023, somewhere between May and July. This news arrived on the heels of the pilot program’s progress to start technical testing in September of this year.
Currently, the pilot program consists of over 120 organizations consisting of financial institutions, payment processors and third-party service providers alike. As the pilot advances to the testing phase, the Federal Reserve is seeking to expand its reach by engaging non-pilot financial institutions and service providers that have the potential to be early adopters of the service.
Ken Montgomery, Federal Reserve Bank of Boston’s first Vice President and FedNowSM Service program executive, had this to say about the updated timeline: “Next year, financial institutions will be able to use the FedNowSM Service as a springboard to provide innovative solutions to their customers."
But wait…there’s more!
On top of the news of the updated timeline in August, effective September 21, 2022, the Federal Reserve Banks released Operating Circular No. 8 (OC 8), along with subpart C of Regulation J and the FedNowSM Service Operating Procedures. This framework applies to funds transfers through the FedNowSM Service.
Within OC 8 you will find definitions, general obligations, operating hours and extensions and much more! There are also multiple appendices that help to outline agreements, fraud reporting procedures and additional processing options.
On the other hand, the FedNowSM Service Operating Procedures document is a great resource that covers terms and conditions, participant profiles, system messages and reports and reconciliation. Think of this resource as your go-to guide for FedNowSM.
With an updated timeline and new documentation up for grabs, it’s definitely exciting times in the FedNow Community!
If you’d like to learn more about FedNowSM, consider joining me for our Virtual Faster Payments Symposium on October 3 and/or my upcoming webinar Four Steps Forward Toward Instant Payments, happening January 24! We also have additional faster payments webinars happening throughout 2023. Click here to visit the online store and see our full roster!
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