Are you aware of the Banking policies in USA? Well, you must
be aware of them if you are planning to shift to USA lately!
In the United States, banking is regulated at two
levels the federal as well as the state level. Excluding the bank
regulatory agencies in the U.S., the country maintains separate securities, insurance
regulatory agencies, and commodities at both the federal and as well as the state
level. Bank regulation in the U.S. works very systematically in
contrast to the other G10 countries, where most
countries have only one bank regulator.
Banks and other of the financial institutions must notify
all the consumer of their policy about the personal information, and must also
facilitate with an "opt-out" before reavealing the data to a
non-affiliated third party.
Deposit account regulation
Deposit insurance
In 1970 Congress cemented an independent fund
for credit
unions i.e. the National Credit Union Share
Insurance Fund. The NCUSIF insures all federally chartered credit unions and
many of the state-chartered credit unions .Others is insured by the private
guaranty corporation American Share Insurance (156 as of 2009). In 1978 foreign banks operating
in the United States were obliged to uphold similar levels of reserves under
the delineations of the International Banking Act
Consumer
protection
The Truth in Savings Act (TISA) was executed
by the Regulation DD which entrenched uniformity in disclosing
terms and conditions in concern with the interest and fees when transmitting
information and when opening a new savings account. On passing the law in 1991,
Congress came across the fact that it would help boost economic stability,
competition between depository institutions, and allow the consumer to make
informed decisions.
The Expedited Funds Availability Act (EFAA)
of 1987 which was implemented by Regulation CC defines that when
standard holds and exception holds can be placed on checks deposited to checking
accounts, and the maximum length of time the money can be held. A
bank's hold policy can be less rigid than the guidelines anticipated, but it
cannot transcend the guidelines.
The Electronic Fund Transfer Act of 1978
which was implemented by Regulation E was implemented for the
rights and liabilities of the consumers as well as the accountability of all
participants in electronic funds transfer activities.
Withdrawal
limits and reserve requirements
·
Constitutes the reserve requirement
guidelines
·
controls certain early withdrawals
from certificate of deposit accounts
·
States the qualification for a
DDA/NOW accounts and also the limitations on certain withdrawals on savings and
money market accounts
·
Unlimited transfers or withdrawals if
performed by any person, by ATM, by
mail, or by messenger
·
In all the other cases, there is a restriction
of six transfers or withdrawals. Not more than three of these six transactions
may be paid to a third party by any of the means.
·
Some banks can probably charge a fee for
each of excess transaction one makes.
Bank
has the right to close those accounts where the transaction limit is constantly
exceeded
