Can anyone present a valid reason to continue case by case holds once all checks become local? I see no risk in doing away with these holds as checks will never be returned to us in two days. Anyone disagree?

You may need to buy yourself some time to validate an item with the paying bank or issuer.

Ironically, a two day case by case hold may be more valuable now than it has ever been. A couple years after Regulation CC took effect, a Fed study indicated that the average return time for a local check was 2.2 days; i.e. the Fed acknowledged in Congressional testimony that it had no tangible value.

Now that the clearing system is accelerating...

As Brenda says too, it gives you a chance for a second look, an opportunity to call the drawee bank...it may be no more worthless now than it ever was.

Very good points. Thanks to both of you for your input!