The Federal Reserve issued a proposed rule on March 3 that would amend Regulation CC (Availability of Funds and Collection of Checks) to encourage banks to clear and return checks electronically, add provisions that govern electronic items cleared through the check-collection system, and shorten the exception hold periods on deposited funds. Comments on the proposal are due by June 3.

Notes: The proposed rule provides that a depositary bank would be entitled to the expeditious return of a check only if it agrees to receive returned checks electronically. In addition, the proposal would shorten the safe-harbor period for an exception hold to four business days.