ICBA expressed support for a Bureau of the Fiscal Service proposal to adopt the 2022, 2023, and 2024 amendments to the Nacha rules.
Details: In a comment letter to the bureau, ICBA noted that community banks operate more efficiently when the public and private sectors adhere to a single set of Automated Clearing House operating rules. The federal government is a large participant in the ACH system, from disbursing salaries for military personnel to the direct deposit of Social Security.
Highlights:
ICBA backed the adoption of the 2024 risk-management supplement, noting that these rules went into effect in the private sector this month.
Fiscal Service proposed eliminating an exemption for Treasury transactions from the Nacha “two-day rule,” which would be in line with standard practice in the private sector.
While the government’s exception to the two-day rule was instrumental in growing ACH transactions over the past 50 years, ICBA said it is delighted the Treasury Department no longer believes the exemption provides a material benefit to the government.