WASHINGTON – The Federal Reserve announced Wednesday a new proposal that would create restricted payment accounts designed specifically for fintech companies and similar firms.
The central bank’s plan would grant these companies access to the Fed’s payment system infrastructure while withholding certain privileges typically reserved for traditional banking institutions. Under the proposal, these limited accounts would exclude access to intraday credit facilities and the Fed’s discount window. Additionally, companies holding these accounts would not receive interest payments on funds kept with the Federal Reserve.
According to the Fed’s announcement, this initiative builds upon previous research the central bank conducted regarding these streamlined account types. The effort represents the Fed’s attempt to find a middle ground between expanding access to its payment infrastructure while maintaining appropriate risk management within the financial system.
