The Federal Reserve yesterday said that its FedNow service will be ready to launch in 2023. The Fed previously indicated that the service would be ready sometime in 2023 or 2024. The initial launch will include core clearing and settlement functionality, as well as other features such as a request-for-payment capability and tools to support participants in their handling of payment inquiries, reconcilements and certain exceptions.
“We are working hard to respond to the industry’s call for urgency and growing demand for the service, which is evident in the widespread response to our call for pilot participants,” said the Boston Fed’s Kenneth Montgomery. “As part of our commitment to transparency, we will continue to provide updates and further narrow our launch window as we achieve additional program milestones.”
As the Fed works to develop FedNow, the American Bankers Association continues emphasize the need for interoperability between the new service and the existing RTP network.