With Same Day ACH closer to becoming a reality — thanks to NACHA’s voting membership approving amendments to the ACH operating rules earlier this week (May 19) — the Federal Reserve Board is wasting no time ensuring the process moves forward on their end.
In fact, the Federal Reserve Board requested comment yesterday (May 21) on enhancements which Federal Reserve Banks are determining if they should add to their current Same Day ACH service. Those enhancements would coincide to the adopted amendments approved by NACHA’s members on ACH rules. The Reserve Banks’ proposal is to adopt the revised Same Day service by using NACHA’s amended operating rules into their own.
To ensure this step is being done properly, the Board is asking for comments as it relates to the Reserve Banks’ adoption of the enhanced rules, which includes mandatory participation of RDFIs and an interbank fee. Comments must be submitted to the Board by July 2.
NACHA’s membership, which consists of most financial institutions in this country directly or through regional associations, voted in favor of a change to NACHA operating rules that adopts Same Day ACH. That’s a speedier alternative to existing ACH, which can take a day or more to settle and clear. The rule requires that all NACHA members have the capability to process any ACH transaction within the same day— a move that can help businesses and consumers move money faster.
NACHA’s voting membership approved amendments to the ACH operating rules to allow originating depository financial institutions (ODFIs) to send Same Day ACH transactions to accounts held at any receiving depository financial institutions (RDFIs). NACHA’s amended rules require all RDFIs to participate Same Day ACH. NACHA’s Same Day ACH will help expand and improve the next-day ACH Network capabilities, as well as help pave the way for same-day clearing and payments settlement via ACH. As part of the new rule approved by the membership, there will be two additional same-day settlement windows. Any originating institution can offer products that clear on the same day, knowing that all receiving institutions will have the capability, as required by the rule change, to process the transactions that same day.
Same Day ACH will be rolled out starting Sept. 23, 2016, in the following three-phase process:
- ACH credit transactions will be eligible for same day processing, supporting use cases such as hourly payroll and person-to-person (P2P) payments and same-day bill pay.
- Same-day ACH debits will be added, allowing for a wide variety of same day consumer bill payment use cases like utility, mortgage, loan and credit card payments.
- Introduction of faster ACH credit funds availability requirements for RDFIs; funds from Same Day ACH credit transactions will need to be available to customers by 5 p.m. RDFI local time.