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Home > Regulation & Examinations > Laws & Regulations > FDIC Federal Register Citations |
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FDIC Federal Register Citations |
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Sent: Monday, September 17, 2001 3:02 PM
To: Comments Subject: Comment on Study of Banking Regulations re: Online Banking It is clear that online banking is a major
component of where banking is headed in the future. A regulation that impedes
the promotion of, and use of, online banking is Regulation D. This regulation
puts limitations on how many times a "preauthorized transfer" can be made during
the course of a month. A "preauthorized transfer" includes transfers from
savings and money market accounts that can be conveniently made via online
banking.
The preauthorized transfer limitation of six has
been in effect for several years. Since that time, banking has expanded it's
services to include telephone banking, ATM's, and now, online banking. All of
these vehicles have made banking more convenient. However, if money is
transferred from savings or money market accounts using these vehicles, it is
counted in the limitation of six.
On one hand we are introducing and promoting these
products, and on the other hand, we are notifying customers that they have
exceeded their transfer limitation and have violated the law.
Not long ago, legislation was pending that would
increase the limit to twenty-four transfers per month; however, this would only
apply to commercial accounts. Please consider increasing the preauthorized
transfer limitation imposed by Regulation D for all accounts.
Julie Smith, Compliance Officer Farmers & Merchants State Bank Springfield, MN 56087 507.723.4800 |
| Last Updated 09/18/2001 | regs@fdic.gov |
