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FRS RIN: 7100-AD48 Publication ID: Fall 2010 
Title: Regulation D--Reserve Requirements of Depository Institutions Policy on Payment System Risk (Docket No. R-1381) 
Abstract: The proposed amendments to Regulation D, Reserve Requirements of Depository Institutions, would authorize the establishment of term deposits at Federal Reserve Banks. Term deposits are intended to facilitate the conduct of monetary policy by providing a tool for managing the aggregate quantity of reserve balances. Institutions eligible to receive earnings on their balances in accounts at Federal Reserve Banks ("eligible institutions") could hold term deposits and receive earnings at a rate that would not exceed the general level of short-term interest rates. Term deposits would be separate and distinct from those maintained in an institution's master account at a Reserve Bank ("master account") as well as from those maintained in an excess balance account. Term deposits would not satisfy required reserve balances or contractual clearing balances and would not be available to clear payments or to cover daylight or overnight overdrafts. The proposal also would make minor amendments to the posting rules for intraday debits and credits to master accounts as set forth in the Board's Policy on Payment System Risk to address transactions associated with term deposits. Board adopted final rule substatially as proposed on May 5, 2010 (75 FR 23384). 
Agency: Federal Reserve System(FRS)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Completed Actions 
Major: No  Unfunded Mandates: No 
CFR Citation: 12 CFR 204   
Legal Authority: 12 USC 461(b)(12)    12 USC 342   
Legal Deadline:  None
Timetable:
Action Date FR Cite
Board Requested Comment  12/31/2009  74 FR 69301   
Board Issued Final Rule  05/05/2010  75 FR 24384   
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Sophia Allison
Senior Special Counsel
Federal Reserve System
Legal Division,
Washington, DC 20551
Phone:202 452-3565