Payments System Risk Policy
August 22, 2002
Circular No. 11460

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a press release, the Federal Reserve Board announced that it will not, over the near term, pursue a policy change that lowers self-assessed net debit caps and eliminates two-week average caps or rejects all payments with settlement-day finality that would cause an institution to exceed its daylight overdraft capacity level. The Board will, however, continue to analyze the benefits and potential drawbacks of a two-tiered pricing regime for daylight overdrafts.

The Board's statement on this matter is attached.

Questions on this matter may be directed, at this Bank to Don Anderson, Assistant Vice President, Credit Risk Management Function.