Federal Reserve Proposes Expanding Ways Banks Transfer Funds

US banks and credit unions may soon be able to use intermediaries to transfer funds through the Federal Reserve’s real-time payments system, according to a central bank proposal.

The plan, which was released by the regulator on Wednesday, would expand the number of banks that can be involved in a single FedNow payment. Currently, a transfer of funds sent through FedNow can include only two US banks.