CUNA provides faster payments recommendations to Fed

December 14, 2018

CUNA supports the Federal Reserve developing a real-time payments network, it wrote to the Fed’s board of governors Friday. CUNA sent its comment letter in response to a Fed call for comments on its faster payments proposal.

“We encourage the Fed to move forward as soon as possible on the development of a real-time payments rail and liquidity management tools. Quick action by the Fed will help credit unions plan for the future as they explore offering real-time payments to members,” the letter reads. “Furthermore, looming decisions by the Fed are likely to adversely impact the nascent market by slowing development.”

Other CUNA recommendations addressed in the letter include:

  • The Fed’s real-time payments network should be interoperable with private sector real-time payments rails;
  • The Fed should require all financial institutions to develop the capability to receive payments from the Fed’s real-time payments network;
  • The Fed should develop a liquidity management tool that is robust and can support other payments types such as automated clearing house (ACH);
  • The Fed should continue to develop and support legacy payments systems; and
  • The Fed should communicate a decision quickly on whether it will develop a real-time payments system and interoperability, as a lack of clarity risks freezing the market.