The adjustments are based on the “annual percentage increase” in the CPI-W. ![]() Note that the regulators will not publish a notice and opportunity for public comments for future adjustments. For example, they anticipate publishing in the first half of 2024 the second set of inflation adjustments, which will become effective July 1, 2025. The regulators anticipate issuing a rule in the Federal Register establishing the inflation adjustments at least one year before the effective date of each upcoming adjustment. Statutorily-Required Inflation Adjustment to Dollar Amountsīanks must adjust the dollar amount thresholds for inflation effective on July 1, 2020, on July 1, 2025, and on July 1 of every fifth year after 2025. ![]() ![]() A bank may impose longer exception holds, but the bank may have the burden of proving that they are “reasonable.” A “reasonable” time period is generally defined as one additional business day (making a total of two business days) for on-us checks, and five additional business days (total of seven) for local checks. This minimum amount increases to $225 effective July 1, 2020.īanks are permitted to delay, for a “reasonable period of time,” the availability of funds for the following types of deposits: (1) deposits greater than $5,000, (2) redeposited checks, (3) deposits to accounts that are repeatedly overdrawn, (4) doubtful collectability, (5) checks deposited during emergency conditions outside of the bank’s control, and (6) deposits into accounts open for less than 30 days. Remember that up to the first $200 of a non-“next-day” check(s) must be made available the next day. Funds from local checks must be made available by the second business day following the day of deposit. However, since there is now only one Reserve Bank check-processing region, there are no longer any “nonlocal” checks for purposes of Regulation CC. That schedule differentiates between “local” or “nonlocal” checks. Deposits (whether cash or check) made at an ATM that is not owned by the bank (a “nonproprietary” ATM) must be made available by the fifth business day.įor checks of types not discussed above, funds generally must be made available in accordance with a schedule specified in Regulation CC. A banking day is any business day (up to the bank’s cut-off hour) when a bank is open for substantially all of its banking activities.Įxceptions: When deposits of cash cashier’s, certified, or teller’s checks and government checks are not made in person (for example, when they are made at one of a bank’s ATMs), the funds must be made available by the second business day. Postal Service money orders, state and local government checks, checks drawn on Federal Reserve or Federal Home Loan banks) and certain “on us” checks (checks drawn on the same bank or a branch thereof).īusiness days are Mondays through Fridays except federal holidays. Among the covered check deposits are cashier’s, certified, and teller’s checks government checks (including U.S. Availability of FundsĬash, electronic payments, and certain check deposits generally must be made available for withdrawal the first business day following the banking day of deposit (“next-day availability”). Subpart B of Regulation CC implements the requirements in Expedited Funds Availability Act (EFAA). ![]() It is not a comprehensive discussion of the regulation.ĮFAA requires banks to make funds deposited into transaction accounts available to customers according to specified time schedules, to adjust the dollar thresholds for inflation every fifth year, and to disclose their funds availability policies to their customers, among others. This discussion is intended to give a broad overview of Expedited Funds Availability Act (EFAA).
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