NEWS on Payments

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ICBA opposes OCC talk of narrow-purpose payments charter

Jul 30, 2020

ICBA and other groups expressed opposition to the OCC's recent discussions to offer a narrowly focused payments charter. Citing financial industry pushback on the OCC's proposed special-purpose fintech charter, the groups asked the agency to clarify its expectations before proposing any narrow-purpose charters.

In a joint letter to Acting Comptroller Brian Brooks, the groups said the agency should undertake an open and transparent process in considering new charters and apply Bank Holding Company oversight to limited-purpose entities.

A federal judge last fall sided with the New York Department of Financial Services in ruling that the OCC lacks the authority to grant bank charters to nonbanks that are ineligible for deposit insurance, which the OCC is appealing.