Federal Reserve Amends Regulation D
BKD Trusted Advisors™ aim to keep you updated on items that could affect your operations directly. As of Friday, April 24, 2020, Regulation D has been amended to suspend enforcement of the six-transfer limit for savings deposits.
The Federal Reserve announced it would provide relief from the six-per-month limit on transfers or withdrawals from savings accounts under Regulation D. This action is a response to help relieve potential financial hardships consumers are facing during the COVID-19 pandemic by providing access to savings deposits.
The Fed noted its recent action reducing all reserve requirement ratios to zero has eliminated the need to distinguish between reservable “transaction accounts” and nonreservable “savings deposits.” The Fed also made corresponding updates to the Call Report to reflect these changes.
As with most topics related to COVID-19, changes are being made rapidly. Please note that this information is current as of the date of publication.
Please do not hesitate to reach out to your BKD Trusted Advisor or use the Contact Us form below if you have questions or concerns we can help your institution with during these times.