US Fed drops two daylight overdraft options from payments risk policy

NEWS

WASHINGTON -- The US Federal Reserve Board said in August it would not incorporate into its payments system risk policy plan two options relating to so-called daylight overdrafts.

But it said it would continue analysing the benefits and drawbacks of two-tiered pricing for daylight overdrafts, which occur when a bank’s account with the US central banking system is overdrawn at any time in the business day.

The Fed said that for the near term at least it would not pursue one proposed plan to lo