FRB to Launch Instant Payment Service in July

The Federal Reserve Board will begin operating the FedNow℠ instant payment service in July.

As previously covered, the FRB adopted final rule amendments modifying Regulation J ("Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire"), which included establishing the new real-time gross FedNow℠ settlement service regulations.

The FRB stated (i) that it will allow the formal certification of participants in April, which will involve a "comprehensive testing curriculum," and (ii) that participants (including the FRB) will conduct production validation activities in June to determine the service's readiness for July.