Check Relay: Controls in Place Comply With Federal Reserve Guidelines

Abstract

Efficiently transporting checks to the paying bank is critical to ensuring the prompt movement of funds throughout the United States and is a crucial step in the nation's payment system. This report discusses the management of the air transportation network used by the Federal Reserve System to transport checks from one Federal Reserve office to another. The Federal Reserve System, a major provider of check collection services for banks, uses this network to provide check-clearing services. These services entail collecting checks and returning dishonored checks. This must be done promptly to minimize (1) banks exposure to losses between the time that deposited funds must be made available for withdrawal under the Expedited Funds Availability Act 3 and the time that banks receive notice that a check is being returned unpaid and (2) the amount of float in the system.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 2001
Accession Number
ADA398274

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Air Platforms
  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Accounting
  • Air Transportation
  • Auditing
  • Commerce
  • Contract Administration
  • Contracts
  • Electronic Mail
  • Flow Network
  • Governments
  • Land Transportation
  • Law
  • Monetary Policy
  • Networks
  • Procurement
  • Transportation
  • United States
  • Websites

Readers

  • Government and Public Administration Law.
  • Logistics and Supply Chain Management.