In June 2019, the Federal Reserve Board and the Bureau of Consumer Financial Protection issued a final rule amending Regulation CC – Availability of Funds and Collection of Checks. The final rule implements a statutory requirement to adjust for inflation the amount of funds depository institutions must make available to their customers as required by The Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as certain amendments made by the Economic Growth, Regulatory Relief, and Consumer Protection Act.
Under the final rule, the adjustments for inflation are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. The final rule implements the first set of adjustments and provides a timetable for adjustments to be made ever five years thereafter.
The following dollar amounts will be impacted by the adjustments and will be effective July 1, 2020:
- The $200 Rule (check deposits not subject to next day availability) adjusted to $225;
- The $400 rule (time period adjustment for withdrawal by cash or similar means) adjusted to $450;
- The new account threshold adjusted from $5,000 to $5,525;
- The large deposit threshold adjusted from $5,000 to $5,525; and
- The threshold for determining a repeat overdraft adjusted from $5,000 to $5,525.
For additional information regarding the changes, please review the published Regulation CC Amendments. These changes will require updates to the financial institution’s Funds Availability Disclosures, Change Notices, poster updates, training materials and system updates.
As you start the process to implement these changes and would like some guidance or a secondary review to ensure all changes required have been identified, please contact ABS at firstname.lastname@example.org.