Custodial Inventory Program

A custodial inventory is currency transferred to the Federal Reserve Banks' books, but physically held by a financial institution within its secured facility, thereby reducing the investment cost of holding currency long enough to recirculate it to customers. The Federal Reserve Banks' Custodial Inventory Program is available only for $10 and $20 notes. For more information regarding the Custodial Inventory Program, or to begin the application process, please review the following:

Ready to begin the application process? Please complete the Custodial Inventory Application (PDF).

Custodial Inventory Manual of Procedures

Effective November 16, 2015, a revised Custodial Inventory Manual of Procedures governs the operations of institutions participating in the Custodial Inventory Program. The revised manual, along with a high level summary of changes, is available below.

If you have questions regarding your institution’s Custodial Inventory Program or the updated Manual of Procedures, please contact your local FedCash® Services contact.

Custodial Inventory Manual of Procedures

Custodial Inventory Skip Weeks

On the first business day of each business week, FedLine Web® provides a Minimum Holdings Requirement (MHR) and Inventory CAP (CAP) for the current business week for each CI Vault. These figures are based on the Institution’s Average Daily Payments from a prior business week. Typically, the MHR and CAP are based on the Institution’s Average Daily Payments from the business week two weeks prior. However, data from business weeks exhibiting high payment activity prior to a holiday (as determined by the Federal Reserve) will not be used to determine the MHR and CAP. In these cases, the most recent available business week that does not include pre-holiday payment spikes will be used.

In general, for holidays that fall on a Monday, the previous business week will be excluded from the MHR calculation; for holidays falling later in the business week, the business week of the holiday itself will be excluded. Business weeks that will be excluded from the MHR calculation due to the impact of holiday payment activity will be available from the Federal Reserve at the beginning of each calendar year.

The confirmed weeks for 2017 are as follows:

Holiday 2017 Skip Week (starting):
New Year's Day January 2 Monday, December 26, 2016
Martin Luther King, Jr. Day January 16 Monday, January 9, 2017
Presidents' Day February 20 Monday, February 13, 2017
Memorial Day May 29 Monday, May 22, 2017
Independence Day July 4 Monday, July 3, 2017
Labor Day September 4 Monday, August 28, 2017
Columbus Day October 9 Monday, October 2, 2017
Veterans' Day November 11 Monday, November 6, 2017
Thanksgiving Day November 23 Monday, November 20, 2017
Christmas Day December 25 Monday, December 18, 2017

Service Disruption Procedures

If you are experiencing a major service disruption, and believe your financial institution qualifies for a cross-shipping waiver, complete the Cross-Shipping Waiver Request form (PDF).

For more information about FedCash® Services processing and operations, visit the service offerings pages or consult your local FedCash Services contact.

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