What are the changes affecting the fee waiver?
The fee waiver for all users of intraday credit has been modified to reduce the burden of the PSR policy on institutions that use small amounts of daylight credit. First, the fee waiver has been increased to $150 from $25. Second, the waiver’s application has been modified: it will be subtracted from the gross fees (in a two-week reserve-maintenance period) of any institution, except for institutions subject to a penalty fee*. In contrast, the current waiver of $25 only applies to gross fees of institutions that have charges less than or equal to $25 (in a two-week reserve maintenance period). The waiver will not result in refunds or credits to an institution. * Penalty fee institutions are institutions that do not have regular discount window access, for example, banker’s banks that do not maintain reserves.
