Fed Reveals Details on Real-Time Payments System’s Core Features

The Federal Reserve’s real-time payments system will include an infrastructure to allow instant transactions every day around the clock, according to new details released Thursday.

The FedNow settlement service -- run through accounts with banks -- will approve transactions “in a matter of seconds, so the receiver will have funds available to use in near real time,” the Fed said in a statement, which also detailed a new liquidity management tool the central bank is setting up to support the system.

“The rapid expenditure of Covid emergency relief payments highlighted the critical importance of having a resilient instant payments infrastructure ...