Would it be in violation of REG CC to place a hold on a mobile deposit? Or since mobile deposits are not covered by the regulation we can defer the availability without following the required time frames set forth by the REG?

What is the difference between taking a mobile deposit and an item at the teller line? Did you prepare a risk assessment when you started offering this service?

Maybe I'm wrong, but I didn't think mobile deposits are covered by Reg CC since they're not a check, an ACH or an ATM deposit? Since mobile deposits are not addressed by the regulation in terms of delaying the funds I'm wondering if we 1) can not delay funds at all since they're not discussed in the regulation or 2) can delay the funds and not follow required time frames or required disclosures since the Reg doesn't include mobile deposits? Thanks.

Did you discuss funds availability in your agreement? They may not fall under Reg CC but look at your agreement to see if you address funds availability at all.

The Mobile Banking Agreement does not discuss delaying funds.

You may want to revisit that agreement then.

I agree. You may want to revisit the agreement and add something in about availability.

I haven't researched this in much detail, but I believe mobile deposits are treated as substitute checks under the Check Clearing for the 21st Century Act. This means they are subject to the same requirements as checks under Regulation CC. You might also want to think about the potential UDAAP implications of placing holds for using non-branch deposits encouraged by the bank, assuming your bank encourages mobile deposits.

One way to manage risk is to adopt limits on the dollar amount that can be deposited via mobile deposit or to limit mobile deposits for new accounts. The other is to review the deposit risk factors in a fashion similar to what you use for other check deposits and determine whether to place a hold.

I think the consensus is that mobile deposits and other remotely deposited checks are not deposited as checks and are therefore not subject to Regulation CC. They are definitely not substitute checks -- they don't meet the definition. They are images of checks which could become substitute checks if reconverted from image to paper check form in a substitute check format.

I agree with the UDAAP comment, if the bank doesn't disclose availability policies if they are more restrictive than for check deposits.