Nacha News

Nacha creates broadly adopted payment and financial messaging rules and standards through consensus-led governance, international collaboration, and innovative development practices. We continually advance the ubiquitous ACH Network and engage diverse stakeholders to accelerate a digital future of global financial services interoperability.

Senate Democrats Introduce Bill to Require Fed to Develop a Real-Time Payments System

On July 24, 2019, Senate and House Democrats unveiled a bill that would require the Federal Reserve to develop a new real-time payments system for consumers and businesses, putting new pressure on the central bank to act amid opposition from lenders that have built their own network.

Sen. Chris Van Hollen (D-Md.) is introducing the bill with fellow Senate Banking Committee member Sen. Elizabeth Warren (D-Mass.), a leading presidential candidate. Nacha’s government affairs team is hearing that a Democratic House bill will be introduced in the House very soon.

This is likely an effort to give the Fed a nudge toward implementing its own faster payments system.  Based on several meetings with Nacha staff, Sen. Van Hollen’s office has been frustrated with how long the Fed has been deliberating whether it should be an operator and offer RTGS.

It’s also interesting that they direct the Fed to operate such a system as a utility and not in line with current cost recovery rules used by the Fed. 

Click here for a Fact Sheet on the bill.

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