I've also hit a mind block. Are we required to send notification to our customer when they make an electronic transfer between acounts at our bank using either the telephone or computer? We are currently mailing out around 200 notices each day and would like to stop. Your help is appreciated.

Check the commentary 205.2(h) which discusses transfers using telephone or home banking equipment. Banks need not provide terminal receipts when these devices are used for transfers. I would think the term "notices" would be synonomus with receipt for purposes of this section.