One part of the question concerning the future of Regulation CC has finally been solved.  The Federal Reserve Board has issued a final rule  to amend the check collection and return provisions in subparts C and D of the regulation, but left unchanged, for now, subpart B, which covers the funds availability and funds availability disclosure requirements. Rulemaking on subpart B must be done in partnership with the CFPB.

In the final rule, the Board has modified the current check collection and return requirements to reflect the virtually all-electronic check collection and return environment and to encourage all depositary banks to receive, and paying banks to send, returned checks electronically. The Board has retained, without change, the current same-day settlement rule for paper checks. The Board is also applying Regulation CC's existing check warranties under subpart C to checks that are collected electronically, and in addition, has adopted new warranties and indemnities related to checks collected and returned electronically (including those deposited via remote deposit capture and mobile remote deposit capture) and to electronically-created items. The final rule will be effective July 1, 2018.

 

The Board has also released for comment a proposed amendment to the regulation's existing liability provisions to address situations when it's unknown whether a substitute or electronic check was altered or forged in certain cases. Comments on the proposal will be accepted for 60 days following Federal Register publication. The proposal was published at  82 FR 25539, with a comment period ending August 1, 2017.