Proposal would allow use of intermediaries for FedNow transfers

The Federal Reserve would permit credit unions to use intermediaries to transfer funds through the FedNow Service under a proposal issued Wednesday. FedNow is the Federal Reserve’s 24x7x365 instant payments service.

It would allow a credit union to use FedNow to transact with a correspondent institution to facilitate the international portion of a cross-border payment. Currently, a transfer of funds sent through FedNow can include only two U.S.-based institutions.

America’s Credit Unions is analyzing the proposal and will submit detailed feedback. Comments are due within 60 days of publication in the Federal Register.