Fed Paves Way for U.S. Electronic Check Law

Published on:
12 September 2006 at 10:18 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00000192-fed-paves-way-for-us-electronic-check-law/

The U.S. Federal Reserve on Friday announced regulatory changes that pave the way for a new law that will let banks use electronic checks instead of paper checks.

The law, Check 21, is aimed at speeding up check handling by banks by letting them use substitute checks — pictures of the front and back of original checks.

Banks are not required to accept electronic checks but the law makes it easier for them to do so.

The Fed’s regulation allows regional Federal Reserve banks — which process checks — to process electronic items. It also establishes new warranties and indemnities that apply to electronic items handled by a regional Fed bank.

For this complete story, please visit Fed Paves Way for U.S. Electronic Check Law.

Fed Paves Way for U.S. Electronic Check Law

Unknown Author

Featured Resources

Webinars

RA Compliance Corner: Managing Your Service Providers- Do you really have it all in order?

About