Federal Reserve Seeks Public Input on New Payment Account for Financial Institutions
The Federal Reserve Board has announced a request for public input regarding the introduction of a new “payment account” for eligible financial institutions. This initiative will enhance the clearing and settling processes for payments.
Overview of the Payment Account Initiative
As of December 19, 2025, the Federal Reserve is focusing on transforming the payments landscape by developing a new payment account tailored for specific financial institutions. This initiative aims to support evolving business models while promoting safety and efficiency in the payment system.
Objectives of the New Payment Account
The proposed payment account will serve distinct purposes:
- Facilitate the clearing and settling of payments.
- Address the limited needs of eligible financial institutions.
- Encourage innovation in the payments industry.
Governor Christopher J. Waller emphasized the importance of this request for information, stating that it is a crucial step for the Federal Reserve to adapt to new payment methods.
Features of the Payment Account
This new payment account is designed with specific limitations:
- It will not accrue interest.
- It will lack access to Federal Reserve credit facilities.
- There will be balance caps imposed on these accounts.
Moreover, this account will differentiate itself from a master account, which current financial institutions utilize. Importantly, the establishment of this payment account will not alter the existing legal framework governing access to Federal Reserve payment services.
Public Participation and Timeline
The Federal Reserve welcomes feedback on this proposal. The comment period will remain open for 45 days following its publication in the Federal Register. Stakeholders are encouraged to share their insights to help shape this initiative.
For further inquiries, individuals can reach the Federal Reserve’s media team via email or phone.
