Regulation

Fed Forces Delay Of New Same Day ACH Processing Window

Federal Reserve

NACHA, national administrator of the ACH network, said a third processing window for same-day transactions will be postponed for six months until the Federal Reserve Board of Governors (Fed Board) approves the initiative.

In September of 2018, NACHA said it would expand same day ACH transactions and establish a “new window” that would “allow Same Day ACH files to be submitted until 4:45 p.m. ET (1:45 p.m. PT), providing greater access for all ODFIs and their customers.”

The new rule was agreed upon and passed on Sept. 13, 2018, and given an effective date of Sept. 18, 2020. The passage was contingent upon the approval of the Federal Reserve Board by June 30 of this year.

However, the Fed Board told NACHA “that it will not be able to provide timely notification of its approval for Federal Reserve services necessary to enable the new window by the deadline provided for in the rule,” NACHA said in its notice.

Because of this, the effective date will be deferred by six months to March 19, 2021. The Fed Board needs to issue a request for public comment before it can approve the new rule, as well as allow the public the appropriate time to comment.

“Previously, the Fed Board informed NACHA that it would need to issue a request for public comment about changes to Federal Reserve services prior to notifying the industry that it would support the new window,” NACHA said. “As of the date of this Operations Bulletin, that public comment notice has not been issued, and the Fed Board has not informed NACHA when that might happen.”

According to a report by Digital Transactions, “It’s unclear how much of a setback the window delay represents for same-day ACH, but it comes at a time when payments providers of all varieties are trying to speed up their services. In the latest example, PayPal Holdings Inc. on Tuesday added a new service called Instant Transfer to bank, with JPMorgan Chase & Co. and The Clearing House as partners.”

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