Fed Ratifies Electronic Bank Statements
Under an interim rule approved by the Federal Reserve, banks will be able to transmit regular deposit account statements by email or make them available on their Web sites for customers who request electronic delivery. The regulation will most likely go into effect later this month.
The rule is a result of an effort to allow more online dissemination of the disclosures banks are required to make for their customers.
Electronic transfer of legally mandated disclosures could mean big saving for banks with the growing number of online consumers.
To address concerns that the electronic transfers may undercut consumer protection laws, the Federal Reserve also modified broader electronic disclosure proposals it first published in March 1998.