Dear Boards of Directors and Chief Executive Officers:
On April 28, 2020, the Board of Governors of the Federal Reserve System issued an interim final rule (opens new window) amending Regulation D, Reserve Requirements of Depository Institutions, that removes the six-per-month limit on transfers from savings deposits, as defined in the regulation. The interim final rule contains FAQs that also appear on the Federal Reserve Board’s website (opens new window), which will be updated as needed. The interim final rule was effective on April 24, 2020.
The interim final rule allows credit unions to suspend enforcement of the six-transfer limit immediately and permits their members to make an unlimited number of transfers and withdrawals from their savings deposits. The amendments permit credit unions to provide members easier access to their savings funds and they simplify account administration.
An earlier Federal Reserve Board interim final rule (opens new window) reduced reserve requirement ratios to zero percent effective March 26, 2020.
There are no mandatory changes to deposit reporting associated with the amendments. Credit unions should be aware of the impact of this interim final rule on account agreements and related matters. Credit unions can use their discretion on whether to classify an account as a transaction account or savings deposit account and report them on the quarterly Call Report accordingly. Refer to the Call Report instructions and the Federal Reserve Board’s current FAQs #4, #5, and #9 for more information.
You can find the full version of Regulation D online (opens new window) at the Electronic Code of Federal Regulations. If you have questions about this information, please contact the NCUA’s Office of Consumer Financial Protection at 703.518.1140 or by email at ComplianceMail@ncua.gov. Credit unions can also contact their NCUA regional office or their state supervisory authority.
Rodney E. Hood