What do the revisions to the PSR policy include?
The revisions to the PSR policy explicitly recognize the role of the central bank in providing intraday balances to healthy depository institutions. The revised policy encourages institutions to voluntarily pledge collateral to cover daylight overdrafts by providing such overdrafts at a zero fee and by raising the fee for uncollateralized daylight overdrafts to 50 from 36 basis points. Other important changes to the PSR policy include the adjustment of net debit caps to eliminate the lower of the existing two overdraft limits, the elimination of the current deductible for daylight overdraft fees, an increase in the fee waiver to $150 from $25, and an increase in the penalty daylight overdraft fee for ineligible institutions. The Board also approved two interim provisions: an early implementation of a streamlined maximum daylight overdraft capacity (max cap) procedure for eligible foreign banking organizations (FBOs) and an interim policy regarding the deductible calculation for eligibl
