Fed Blocks Payment Accounts from Discount Window
Published Date: 5/26/2026
Proposed Rule
Summary
The Federal Reserve is proposing a rule that says if you have a special-purpose payment account, you can’t borrow money from the Fed’s discount window. This change won’t affect the usual borrowing programs or interest rates. If you want to share your thoughts, you have until July 27, 2026, to speak up!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Payment Accounts Block Discount Window
The Board proposes to change Regulation A so that a depository institution that holds a Payment Account would not be eligible to borrow from the Federal Reserve discount window. The proposed text would add a definition of "payment account" (Sec. 201.2(d)) and add Sec. 201.3(a)(4) specifying that a Reserve Bank may not lend under Sec. 201.4(a), (b), or (c) to any depository institution that holds a payment account.
Small Entities Possibly Affected (~200)
The Board estimates the proposed amendment could affect approximately 200 small entities if they were to request Payment Accounts. The Board used the SBA size standard of $850 million in total assets and estimated about 7,000 small entities in scope, of which about 6,800 already have master accounts or access through a correspondent, leaving roughly 200 that might decide to request a Payment Account.
Master Account Holders Keep Eligibility
The proposal would not change discount window eligibility for other depository institutions that do not hold Payment Accounts. Institutions with master accounts, or those that access the discount window through a correspondent's master account, would continue to be eligible under existing Regulation A rules.
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Key Dates
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