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&#160;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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