I have been asked to write a procedure for Now Accounts. I have done that, but now I would like to compare it to another bank, to be sure I covered everything. Does anyone have a Procedure for NOW accounts that you would like to share with me?

I am sorry I don't a NOW policy to share with you, but I was wondering why you needed a policy for NOW accounts in the first place. Although there is the reserve requirement thing, but really, who is getting hurt here? The ineligible customer doesn't care so long as the account bears interest and drafts can be written against the funds. Examiners typically won't go after you regarding NOW accounts, but if they are, by all means, do what you have to do. Good luck!

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Examiners typically won't go after you regarding NOW accounts,

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I'm not sure what type of examiners you have, but I wouldn't count on that. I would hate to have to pay back reserves on all the mistakes.

As a consultant, we are in touch with over 500 client banks. We see their examination reports as we provide consulting services to them. Ineligible NOW accounts are often cited in reports. More specifically it is FRB and FDIC regulated banks, but this is cited frequently.