The Federal Reserve Board has issued a request for comment on proposed amendments that would repeal Regulation Q, Prohibition Against Payment of Interest on Demand Deposits. Regulation Q currently prohibits financial institutions that are members of the Federal Reserve System to pay interest on demand deposits. The amendments are being proposed in response to Section 627 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which is set to repeal Section 19(i) of the Federal Reserve Act in its entirety effective July 21, 2011. The repeal of this section of the Federal Reserve Act eliminates the authority of the Federal Reserve Board to promulgate Regulation Q.
Comments on the proposed amendments must be submitted within 30 days from the date of publication in the Federal Register (date of publication was April 14, 2011).
If you have questions on the impact of these proposed amendments, please contact the experts listed below at (800) 270-9629. To receive banking updates from PYA on Twitter, click here.
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