Banks get leeway on 'low-risk' checks

September 06, 1992|By Knight-Ridder News Service

Beginning next month, banks will have greater leeway when accepting certain "low-risk" checks for deposit.

Under current law, if a person deposits a U.S. government check, a certified check or a cashier's check, the funds must be made available to the customer the next business day.

But late last year, the Federal Reserve voted to give banks greater discretion, a move aimed at reducing fraud. The change becomes final on Sept. 14.

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