The Federal Reserve Board announced final amendments to the check collection and return provisions in Regulation CC (Availability of Funds and Collection of Checks) and also requested further public comment on an additional proposed amendment to Regulation CC's liability provisions.
Effective July 1, 2018, the final rule modifies the current check collection and return requirements to reflect the virtually all-electronic check collection and return environment and to encourage all depositary banks to receive, and paying banks to send, returned checks electronically. The Board has retained, without change, the current same-day settlement rule for paper checks.
The Board is also applying Regulation CC’s existing check warranties under subpart C to checks that are collected electronically. The change will bring remote deposit capture checks and mobile deposit checks under the purview of Regulation CC. Additionally, the final rule provides clarity for instances where a check is deposited via both paper and electronic form. The rule states unless the paper check includes a restrictive indorsement, such as for mobile deposit only, the depository institution that receives the paper check is provided indemnity.
In response to comments received, the Board is also requesting comment on proposed language amending Regulation CC's existing liability provisions to include a presumption that a substitute or electronic check was altered instead of forged in certain cases of doubt. Comments on the proposed amendments are requested within 60 days of publication in the Federal Register, which is expected shortly.
The FRB release can be found here.