The Board of Governors of the Federal Reserve System has approved modifications to the Federal Reserve Banks’ FedACH® Services, National Settlement Service and Fedwire® Funds Service to help facilitate adoption of a later Same Day Automated Clearing House (ACH) processing and settlement window.

Specifically, the Federal Reserve Banks will:

  • Add a new, later Same Day ACH processing window to FedACH Services, with a deadline of 4:45 p.m. ET for originating depository financial institutions (ODFIs) to transmit files to FedACH Services, a target deadline for distributing files to receiving depository financial institutions (RDFIs) of 5:30 p.m. ET and a target for settlement of items in those files at 6 p.m. ET
  • Extend the daily operating hours of the National Settlement Service to 6:30 p.m. ET from 5:30 p.m. ET
  • Extend the daily operating hours of the Fedwire Funds Service to 7 p.m. ET from 6:30 p.m. ET
  • Reduce the window between the close and reopening of the Fedwire Funds Service to 90 minutes from two hours
  • Increase the threshold for extending the closing of the Fedwire Funds Service to $3 billion of delayed funds transfers from $1 billion, with the expectation that the threshold could be increased further to maintain the consistent 9 p.m. ET reopening of the service. The Federal Reserve Banks will closely monitor delays to the reopening of the Fedwire Funds Service and will determine, in consultation with the Board, whether further increases to the threshold may be warranted.

These changes are in response to a rule change approved by Nacha’s voting members to create a third new processing window for Same Day ACH items. The Federal Reserve Banks will make these changes in alignment with, and in support of, Nacha’s effective date of March 19, 2021. We will provide additional information regarding the changes closer to implementation.

A third Same Day ACH processing window aligns with the Federal Reserve's ongoing objective to support improvements in the speed, security and efficiency of payment systems in the United States as well as public interest in the greater availability of payment services. More information will be available on the Same Day ACH Resource Center.