On December 19, the Fed announced it had issued an RFI in the Federal Register seeking public input on a proposed “payment account” prototype. This account would be designed for eligible financial institutions to use solely for clearing and settling payments. According to the Fed, this special-purpose account would be distinct from a master account. It would feature an overnight balance cap — set at the lesser of $500 million or 10 percent of the institution’s total assets — and would not pay interest or provide access to Fed credit, including the discount window or intraday credit. As previously covered by InfoBytes, Fed Governor Christopher Waller first previewed the payment account, which he referred to as a “skinny master account,” in October 2025. The proposal would restrict account usage to specific payment services, such as the Fedwire Funds Service, National Settlement Service, and FedNow Service.
The Fed emphasized that the payment account would not expand legal eligibility for access to accounts or services and would be subject to risk controls, including automated overdraft prevention and compliance with anti-money laundering requirements. The agency is seeking comments on whether the design supports payment innovation, the impact of overnight balance limits, and how to best address BSA/AML risks. Comments on the proposal must be submitted on or before February 6.
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