The final rule for Regulation CC, effective July 1, 2018, does not require banks to have a restrictive indorsement for remote deposit capture (RDC). In general, the final rule states that a bank should determine whether the risks involved in use of remote deposit capture are in line with the bank’s risk management. The Board believes that the indemnities provided in the final rule will provide basic protections for banks handling electronically-created items and help prevent multiple deposits of the same item.
As part of the bank’s risk management program, the bank must measure and consider the risks presented by remote deposit capture for deposits and operations, consider the following:
- What policies and procedures are necessary to minimize the risk presented;
- Who is responsible for addressing an issue that may arise as a result of RDC and the presentment of a paper check;
- What types of internal controls are necessary to ensure operations has a method of identifying such issues;
- Working with the bank’s provider for remote deposit capture to ensure that the deposit has a restrictive indorsement e.g., for mobile deposit only to ABC bank.
Reference: Federal Register, Thursday June 15, 2017, page 27578 See also: Regulation CC 12 CFR 229.2(hhh); 229.34(f) Official Staff Interpretation 229.34 and 229.34(f); Federal Register, Thursday June 15, 2017, page 27578