Fed Proposes Rule Change for FedNow Cross-Border Payments

The Federal Reserve Board has proposed an update to its rules that would enable U.S. banks and credit unions to utilize intermediaries for cross-border fund transfers via the FedNow Service. Currently, FedNow transactions are limited to only two U.S. financial institutions. This proposed change aims to significantly enhance the service's capability for international payments, making it more competitive and accessible for a wider range of financial transactions. The move is expected to streamline international remittances and business payments, potentially reducing costs and settlement times for consumers and corporations alike.