The Federal Reserve Board is asking the public to weigh in on a proposal that would create a new, stripped-down type of account at the central bank. Think of it as a master account on a diet: access to some of the Fed’s payment infrastructure, but with significant restrictions on what you can actually do with it.
The proposal, formally called a Request for Information and Comment, outlines what’s being referred to internally as a “payment account” or, more colorfully, a “skinny master account.” It’s designed for financial institutions that are already legally eligible for a traditional master account but want a more focused, limited-scope relationship with the Fed.
What the payment account actually does
Here’s the thing. A traditional master account at the Federal Reserve is the golden ticket of American finance. It lets institutions settle payments, access the discount window for emergency lending, and tap into the full suite of Fed services. The new payment account is none of that.
Institutions with these accounts would get access to specific Fed payment services like Fedwire Funds and FedNow. That’s it. No FedACH. No check operations. No access to Fed credit facilities.
