The Federal Reserve Board has opened public comment on a proposal that would allow banks and credit unions to use intermediaries for FedNow transfers.
The Federal Reserve Board has opened public comment on a proposal that would allow U.S. banks and credit unions to use intermediaries to transfer funds through the FedNow Service.
The board said in a press release on Wednesday that the proposal is designed to expand how institutions can access and route FedNow payments. FedNow is the Federal Reserve's instant-payment service.
The proposal follows earlier FedNow rulemaking, including the original proposed rule in 2021 and the final rule in 2022 that established the service's funds-transfer framework.
The central bank did not include the full comment deadline in the summary reviewed, but the move opens another round of industry and public feedback on how the service should operate.
The new proposal could matter for banks, credit unions and payment providers that want more flexibility in how they connect to the FedNow system.
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