EFA Change under Dodd-Frank

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Question:

Could you direct me where to find in the Dodd-Frank Reform Act where the change to EFA from $100.00 to $200.00 will be happening. I know I read it and now cannot find where I read it. I checked EFA Reg but it has not been updated, but we have updated our disclosures and signage to reflect the $200.00.

Answer:

As you may have heard, the Fed has issued a proposed rule that would extensively amend Regulation CC. In the Supplemental Information in the Federal Register document, the Fed reminded bankers that whether or not the proposal is finalized by July 21, 2011, banks must make the change by that date. That will require updated disclosures and operational or systems changes, as applicable, to make the first $200 of non-next-day items available on the first business day following the banking day of deposit.

Because the Dodd-Frank Act's change to the EFAA forces a change in some banks' policies that provides faster availability for depositors, the banks that are affected will need to provide a notice of the change in policy within 30 calendar days of the day the banks effect the change. If a bank makes the change on July 21, the notice will have to be given by August 20, 2011.

First published on BankersOnline.com 4/11/11