Even as credit union trade groups continue to urge the Federal Reserve to speed up implementation of the FedNow service of instant payments, the Fed has extended the comment period for the latest batch of proposed rules for the service.
The Fed announced this week that it is extending the comment period for technical changes to the proposal from Aug. 10 to Sept. 9. “An extension of the comment period will provide additional opportunity for interested parties to analyze the proposal and prepare and submit comments,” the Fed said.
Once it is implemented, the FedNow service will allow customers to send and receive payments at financial institutions instantly. The Clearing House, a company owned by the largest commercial banks, has a quick-payment service, but credit union trade groups have pointed out that credit unions have little control over that company.
Just this week, Lance Noggle, the Credit Union National Association’s senior director of advocacy and senior counsel for payments and cybersecurity, urged the Fed to implement the service faster. “We encourage the Board to use all the resources at its disposal to speed up development of FedNow so that new products and services can be brought to the market,” he said, in a letter to the Fed.
He added that CUNA has been encouraged by reports that Fed officials are collaborating with stakeholders in the development of FedNow.
As far back as November 2019, National Association of Federally-Insured Credit Union officials asked the Fed to “expedite delivery and seek to launch at the earliest possible date.”