The Credit Union National Administration (CUNA) expressed its support for the continuing development of the Federal Reserve’s FedNow service, a real-time payments network.
The statement of support comes in response to potential modifications to Federal Reserve policy on payment system risk. The modifications seek to expand access to collateralized intraday credit, clarify access to uncollateralized credit, and support the deployment of the 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,” CUNA officials wrote in a letter to the Federal Reserve. “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.”
In the letter, 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. Further, it would like to see a revision of the daylight overdraft and the penalty fee calculations for all institutions to reflect the 24-hour business day. But this should be done with no overall increase in fees.