Effective January 1, 2019, the Federal Reserve Banks are amending Operating Circular 3 (OC 3), Collection of Cash Items and Returned Checks.

Revisions address the following:

  • Making the operating circular more focused on electronic processing
  • Updating the adjustment provisions
  • Reflecting other changes to the way the Reserve Banks provide Check Services
  • Defining terms in the operating circular or Regulation CC (Reg CC)
  • Reflecting proposed Regulation J (Reg J) amendment language explicitly stating that electronically created items (ECIs), which are essentially images that were not issued as paper checks, are not items

Detailed summary of changes

To help depository institutions prepare for the changes, the revised version of OC 3 (PDF) and a complete summary of changes (PDF) are now available for review at the Operating Circulars page.

Revisions to the OC 3 will be effective January 1, 2019. Your continued use of Reserve Bank services on or after January 1, 2019, constitutes agreement to the new terms of the operating circular.

New Check Adjustment options

As previously announced, the Federal Reserve Banks will introduce new Check Adjustment options from the four new indemnities in response to the Reg CC (Off-site) amendments. In light of the changes to Reg J (Off-site) and OC 3, the option to submit claims under these new indemnities will be effective January 1, 2019. The Federal Reserve Banks will accept Warranty/Indemnity Claims (WICs) Associated with Remote Deposit Capture (RDC) Items and WICs Associated with Unauthorized Electronically Created Items (UECIs) for Paid Item (PAID) adjustment entries or items processed or returned on or after January 2, 2019. Additional information on the criteria for submitting the new indemnity claims can be found in our May 22, 2018, communication.

If you have any questions or need additional information, please contact FedACH® and Check Services Customer Support at (877) 372-2457.