Following a request for views in late 2019, the Federal Reserve has largely finalized its plans for FedNow, initiating a Fed-owned and -operated instant-payment service for domestic transactions. As in the proposal, the final Fed policy creates an interbank, 24x7x365 real-time gross settlement service with U.S. clearing functionality. Once dubbed “faster” payments by the Fed, the new service is now called “instant” to describe its benefits and distinguish it from other services (e.g., same-day ACH) also under development.
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