Federal Reserve Board approves final amendments to simplify Regulation J and to make it conform more closely with Regulation CC
This article was originally published Nov. 15, 2018, on FederalReserve.gov.
The amendments [to Regulation J] align the rights and obligations of parties, including the Federal Reserve Banks, with the Board's 2017 amendments to Regulation CC, which reflected the evolution of the nation's check collection system from one that is largely paper-based to one that is virtually all electronic. The amendments also clarify and simplify provisions of Regulation J, remove obsolete provisions, and improve consistency between Regulation J and Regulation CC. Finally, the amendments clarify that electronically-created items (check-like items created in electronic form that never existed in paper form) are not "items" that the Reserve Banks are authorized to handle under Regulation J.