The Federal Reserve announced today it is seeking comment on whether to create a new “payment account” category that certain financial institutions could use for the limited purpose of clearing and settling payments.
Earlier this year, Fed Governor Christopher Waller proposed the creation of “skinny” master accounts that would provide basic Fed payment services to legally eligible institutions but would lack many of the features of actual master accounts. Payment accounts would be distinct from master accounts in that they would not pay interest, not have access to Fed credit and would be subject to balance caps, according to the Fed notice.
The Fed is seeking answers to several questions, such as whether the accounts as proposed would support the activities of eligible institutions. Comments must be received 45 days after the request is published in the Federal Register.
