On July 14th, the Federal Reserve Board approved a final rule repealing Regulation Q, which prohibited the payment of interest on demand deposits by institutions that are member banks of the Federal Reserve System. The final rule implements Section 627 of the Dodd-Frank Act, which repeals that section of the Federal Reserve Act prohibiting the payment of interest on demand deposit accounts effective July 21, 2011. Federal Reserve Board Press Release. The FDIC also published a final rule amending its regulations to reflect the repeal of the prohibition against the payment of interest on demand deposit accounts. 76 FR 41392.