Fed proposes to establish limited payment accounts

The ​U.S. Federal ‌Reserve proposed Wednesday ​adopting a new, more limited form of ‌a payment account that would allow firms like fintechs the ability to move money ‌across the Fed's payment rails without ‌enjoying all the backstops available to traditional banks. In a statement, the Fed said the ⁠proposed ​accounts ⁠would not include access to intraday credit or ⁠the Fed's discount window, nor would firms earn ​interest on reserves held at ⁠the Fed. The proposal stems from earlier work ⁠the ​Fed did exploring the slimmed down accounts, as it explores ways ⁠to balance granting more firms access to its ⁠payments ⁠infrastructure without injecting undue risk into the financial system.