The New FRB Regulations on Depositing Currency
What They Mean to You
| Are you as confused by the latest Federal Reserve Bank FedCash® Services requirements as I am? The FRB is always working to improve its services and efficiencies. But in the last year, FRB regulations seem to be in overdrive. In fall 2009, they made the first “official” change to their requirements for depositing currency and coin in six years. Now they are making another change in a matter of months. In my role as a product manager for Block and Company, I have found myself picking apart the rhetoric to decipher what the FRB regulations really mean and how they may affect your financial institution. The FRB made changes to the packaging requirements for both currency and coin effective November 1, 2009. For coin deposits, the FRB regulations stipulate that deposits must be made in plastic bags or traditional standard canvas bags with seals. This is a change from the 2003 rules that asked for plastic bags only. When using plastic, remember that the bags must:
Here is a list of coin packaging products that meet the above requirements: Other specific rules apply if canvas bags are used for coin, such as color-coded tags that adhere to the ABA standards based on denomination with proper identification and closure. Although there were some tweaks in the rules, most are familiar with this and are compliant with them. The FRB has these requirements in place in order to create efficiencies within their organization that will allow them to process your deposits. The requirements are set so that depositors are not sending deposits in bags that are not constructed or not intended to handle, transport and process 55 lbs. of coin. The requirements far out perform what is actually being submitted. For example, it is not possible to fit 100 lbs. of coin in a “standard size” bag. Nor is it humanly feasible to lift and carry the load of 100 lbs bags without compromising health and safety standards. The hang test, however, does demonstrate how the fully-reinforced handle will help facilitate transportation and processing. Where I seem to get so many questions is regarding the FRB regulations for currency deposits. I suppose this is because prior to November 1, 2009, there were no specifications for currency deposits. Since November, the FedCash® Services has tweaked the specifications slightly, again. Approved packaging for currency deposits include clear, plastic disposable bags, clear plastic containers or metal containers. When using plastic the bag must:
Here is a short list of packaging products for currency that meet the above requirements: Tamper Evident Currency Bundle Bags There are specifics on how the FED would like the currency to be submitted. Some of the requirements include strapping like denominations in ABA approved color currency straps, stamping the straps with specific depositor information and bundling the notes properly for processing at the FED. A bundle consists of 1,000 notes of the same denomination in ten equal straps of 100 notes each. The bag can consist of bundles of varying denominations (so you can have a bundle of $1’s, with a bundle of $5’s). On November 9, 2009, the FedCash® Services announced that it would be transforming its practices in order to create efficiencies in processing deposits. Unlike the requirements that went into effect just a few days earlier, these new requirements will be rolled out over the course of the next few years and will start with the New York region effective April 5, 2010. Many customers are confused as to what they should expect in April. Basically, the FED wants to track where bags are coming from. In order to do so, they are requiring that each manufacturer register with them. In turn, the Fed will assign a range of bar code sequences that will be unique to each of the manufacturers. The locations are needed to expedite the new processes that the FedCash® Services are putting in place. As of now, this new bar coding only affects currency deposits. At this time there is no adjustment to any coin bags. The new processes are rolling out over the course of the next few years which means that other regions will be introducing this requirement in a staggered fashion over time. The specific timeline has not been established as of yet. It has been determined that the bar coding is specific to the manufacturer, not the region of deposit. Customers depositing to multiple regions do not need to keep or maintain numerous inventories. As with anything, the FRB regulations will continue to evolve and change with time. Overall, however, customers will be serviced better. It’s come a long way. Return from FRB Regulations on Depositing Currency to Knowledge Center |
Coin Tote Shipping Labels
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