The Clearing House Adds Seats for CUs, Releases Business Principles
If eligible, every federally-insured U.S. depository institution can directly participate in the RTP network.
Among other things, the newly-released principles state that every federally-insured U.S. depository institution can directly participate in the RTP network in accordance with eligibility requirements. The Clearing House, which is based in New York, N.Y., also said RTP fees will stay flat for all participants regardless of size and will not include volume discounts or minimum volume requirements.
The core payments rail said representatives from credit unions, community banks and corporate end users urged it to share information about the rules during a series of one-on-one meetings and information sessions held over the past year across the country.
“The RTP network was built for financial institutions of all sizes throughout the U.S. financial system and our goal is to ensure that these depository institutions are provided with a clear understanding of the system, including its pricing and ongoing governance,” The Clearing House President/CEO Jim Aramanda said. “In addition to the Business Principles, the RTP pricing schedule, operating and participation rules, message specifications, security requirements and more, have been – and will continue to be – publicly available on TCH’s website.”
Its RTP Business Committee meets monthly to provide input on the network’s strategic execution, oversee risk management practices and administer the rules for the RTP network, among other things.
“Having four new financial institutions at the table representing system users of different sizes will help ensure that the network fully incorporates the needs of all users as real-time payments become universally available throughout the country,” Aramanda said.
The Clearing House, which is owned by 25 commercial banks, is collaborating with corporate credit unions, bankers’ banks, and core processing and payment providers to ensure that all U.S. financial institutions have access to the network by 2020. The Clearing House is a private-sector ACH and wire operator clearing and settling nearly $2 trillion in U.S. dollar payments each day, representing half of all commercial ACH and wire volume, according to the organization.