Association Urges Federal Reserve to Relax Reg D

The MD|DC Credit Union Association sent a letter to the Federal Reserve Board on Thursday to express concerns related to the transfer limit imposed by Regulation D.

Fed Reserve Logo 280x210Under Regulation D, consumers are limited to six transactions per month from savings or money market accounts. With federal, state and local governments urging Americans to stay home and limit contact with others, making transfers by phone or through mobile banking applications is the safest way to access funds and yet these methods count against the transfer limit. The Federal Reserve recently reduced the reserve requirement ratios to zero percent and some credit unions have been reclassifying share or money market accounts as transaction accounts to "work around."

In the letter, MD|DC Credit Union Association President/CEO John Bratsakis urged the Fed to rescind or modify the transfer limit.

“Credit unions should not have to create novel approaches to account classification in a time of need. Credit unions exist to serve their members and should be able to help when asked. Common sense regulations should allow flexibility to react to any situation that may present itself while keeping safety and soundness in the forefront.”