Notice2021-26319
Proposed Agency Information Collection Activities; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 3, 2021
Issuing agencies
Federal Reserve System
Abstract
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, without revision, the Recordkeeping and Disclosure Requirements Associated with Regulation II (FR II; OMB No. 7100-0349).
Full Text
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<title>Federal Register, Volume 86 Issue 230 (Friday, December 3, 2021)</title>
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[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Pages 68667-68668]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-26319]
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FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, without
revision, the Recordkeeping and Disclosure Requirements Associated with
Regulation II (FR II; OMB No. 7100-0349).
DATES: Comments must be submitted on or before February 1, 2022.
ADDRESSES: You may submit comments, identified by FR II, by any of the
following methods:
<bullet> Agency Website: <a href="https://www.federalreserve.gov/">https://www.federalreserve.gov/</a>. Follow
the instructions for submitting comments at <a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#65170002164b060a0808000b11162503000100170409170016001713004b020a13"><span class="__cf_email__" data-cfemail="3f4d5a584c115c5052525a514b4c7f595a5b5a4d5e534d5a4c5a4d495a11585049">[email protected]</span></a>. Include the OMB
number or FR number in the subject line of the message.
<bullet> FAX: (202) 452-3819 or (202) 452-3102.
<bullet> Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments are available from the Board's website at
<a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a> as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any confidential
business information, identifying information, or contact information.
Public comments may also be viewed electronically or in paper in Room
146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m.
and 5:00 p.m. on weekdays. For security reasons, the Board requires
that visitors make an appointment to inspect comments. You may do so by
calling (202) 452-3684. Upon arrival, visitors will be required to
present valid government-issued photo identification and to submit to
security screening in order to inspect and photocopy comments.
Additionally, commenters may send a copy of their comments to the
Office of Management and Budget (OMB) Desk Officer for the Federal
Reserve Board, Office of Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Room 10235, 725
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551, (202)
452-3829.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collections of information conducted or
sponsored by the Board. In exercising this delegated authority, the
Board is directed to take every reasonable step to solicit comment. In
determining whether to approve a collection of information, the Board
will consider all comments received from the public and other agencies.
During the comment period for this proposal, a copy of the proposed
PRA OMB submission, including the draft reporting form and
instructions, supporting statement, and other documentation, will be
made available on the Board's public website at <a href="https://www.federalreserve.gov/apps/reportforms/review.aspx">https://www.federalreserve.gov/apps/reportforms/review.aspx</a> or may be requested
from the agency clearance officer, whose name appears above. Final
versions of these documents will be made available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>, if approved.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper
[[Page 68668]]
performance of the Board's functions, including whether the information
has practical utility;
b. The accuracy of the Board's estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Proposal Under OMB Delegated Authority To Extend for Three Years,
Without Revision, the Following Information Collection
Report title: Recordkeeping and Disclosure Requirements Associated
with Regulation II.
Agency form number: FR II.
OMB control number: 7100-0349.
Frequency: On occasion.
Respondents: State member banks, national banks, insured nonmember
banks, savings associations, and federally-chartered credit unions.
Estimated number of respondents: Implement policies and procedures,
1; Review and update policies and procedures, 527; General
recordkeeping, 527; Annual notification and change in status, 527.
Estimated average hours per response: Implement policies and
procedures, 160; Review and update policies and procedures, 40; General
recordkeeping, 1; Annual notification and change in status, 1.
Estimated annual burden hours: Implement policies and procedures,
160; Review and update policies and procedures, 21,080; General
recordkeeping, 527; Annual notification and change in status, 527.
General description of report: Regulation II--Debit Card
Interchange Fees and Routing (12 CFR part 235) implements, among other
things, standards for assessing whether interchange transaction fees
for electronic debit transactions are reasonable and proportional to
the cost incurred by the issuer with respect to the transaction, as
required by section 920(a) of the Electronic Fund Transfer Act (EFTA)
(15 U.S.C. 1693o-2(a)).
Regulation II limits the interchange transaction fee that covered
issuers (issuers that, together with affiliates, have assets of $10
billion or more) can charge for electronic debit transactions. Under
the rule, a covered debit card issuer is allowed to receive or charge
an interchange transaction fee in the amount of 21 cents plus 5 basis
points multiplied by the value of the transaction. In addition, a
covered issuer may receive or charge an amount of no more than 1 cent
per transaction (the ``fraud-prevention adjustment'') for the costs
associated with preventing fraudulent electronic debit transactions
(fraud-prevention adjustment) if the issuer complies with the standards
and requirements set forth in the rule. In addition to these
interchange fee provisions, Regulation II prohibits any issuer (i.e.,
not just covered issuers) or payment card network from directly or
indirectly restricting the number of payment card networks on which an
electronic debit transaction may be processed to less than two
unaffiliated networks, and from directly or indirectly inhibiting the
ability of a merchant to direct the routing of electronic debit
transactions for processing over any payment card network that may
process such transactions. Finally, Regulation II prohibits any issuer
from receiving net compensation from a payment card network with
respect to electronic debit transactions or debit card-related
activities within a calendar year.
Legal authorization and confidentiality: The Recordkeeping and
Disclosure Requirements Associated with Regulation II are authorized by
section 920(a)(3) of the EFTA.\1\ The fraud-prevention and disclosure
requirements are additionally authorized by section 920(a)(5) of the
EFTA.\2\ Regulation II's general recordkeeping requirement for issuers
is mandatory. Regulation II's fraud-prevention recordkeeping
requirements and disclosure requirements are required to obtain a
benefit.
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\1\ 15 U.S.C. 1693o-2(a)(3) (authorizing the Board to prescribe
regulations regarding interchange transaction fees and require
issuers or payment card networks to provide to the Board such
information as deemed necessary).
\2\ 15 U.S.C. 1693o-2(a)(5) (permitting the Board to allow for
the fraud-prevention adjustment and condition it upon compliance
with fraud-related standards promulgated by the Board).
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The Recordkeeping and Disclosure Requirements Associated with
Regulation II are generally not submitted to the Board or to any of the
federal financial regulatory agencies. In the event that the Board
obtains such information, it may be kept confidential under exemption 4
of the Freedom of Information Act (FOIA) to the extent that it contains
commercial or financial information both customarily and actually
treated as private.\3\ If such information is obtained through the
examination or enforcement process, it may be kept confidential under
exemption 8 of the FOIA.\4\
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\3\ 5 U.S.C. 552(b)(4).
\4\ 5 U.S.C. 552(b)(8).
Board of Governors of the Federal Reserve System, November 29,
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-26319 Filed 12-2-21; 8:45 am]
BILLING CODE 6210-01-P
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