Fed Proposes Limited Payment Accounts for Fintechs to Access Payment Services Without Master Account Access

COINOTAG News reports that the Federal Reserve is seeking feedback on a framework to offer limited payment accounts to select financial institutions. These accounts would enable use of the Fed’s payment services for clearing and settlement, but would not provide master account access. They would be interest-free and capped by balance limits, with restricted access to the Fed’s credit facilities. Aiming to support payments innovation while preserving system integrity.

Governor Waller says the proposal could broaden fintech use of central bank rails without compromising risk controls. The plan keeps these limited accounts separate from core facilities, with clear oversight. It seeks to widen clearing and settlement while maintaining security and prudent credit exposure limits.

The concept emerged last October as the Fed weighed extending access to payment rails for non-bank participants while preserving system integrity. The feedback process signals a measured approach to payments infrastructure and fintech inclusion without broad master account access.