FDIC Tells Banks To Get Ready For Check 21 - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Government // Enterprise Architecture

FDIC Tells Banks To Get Ready For Check 21

Banks must make operational changes to comply with law, regulatory group says.

Federal Deposit Insurance Corp. has notified banks under its jurisdiction to start preparing for the Check Clearing for the 21st Century Act, also known as Check 21, which goes into effect in October. The law gives banks the option of scanning checks deposited at ATMs and branches and transmitting the check images to the banks on which they're drawn.

In a letter dated May 21, the FDIC told CEOs and CIOs to begin planning for operational changes needed to implement Check 21. The FDIC regulates more than 5,000 small savings and loans and state-chartered banks, many of which lack image-handling capabilities.

To accommodate them, Check 21 lets banks transmit check images to service providers near the banks against which the checks are drawn. There, check images are printed as facsimiles and hand-delivered to the receiving banks, thereby saving the sending banks the cost of transporting original paper checks.

The FDIC letter calls on its member banks to begin training staff to deal with myriad Check 21-related customer-service issues. For example, if a customer questions the validity of a facsimile of a check, the bank must credit the customer's account. If the original check was destroyed and a better copy can't be located, then the bank that converted the check into an image bears the loss.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Enterprise Guide to Edge Computing
Cathleen Gagne, Managing Editor, InformationWeek,  10/15/2019
News
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
Slideshows
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
Slideshows
Flash Poll