Federal Reserve Proposes Expanding Ways Banks Transfer Funds (1)

April 8, 2026, 8:06 PM UTC

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.

The Fed said the proposal aims to provide lenders with “additional flexibility” in how they transact with other banks to facilitate the international portion of a cross-border payment.

The proposal, which ...

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