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Making Reg CC hold amounts easier

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The inflation-adjusted dollar amounts, especially $225 and $5,525, in Regulation CC are cumbersome to work with. Can a bank “round them up” to amounts that are easier to work with, such as $250 and $5,600?

Certainly. That would have the effect of providing the depositor availability to funds deposited by check sooner or in greater amounts than required, which is allowed.

I don’t advise going overboard, though. I have heard of banks that bumped those amounts up to $500 and $6,500, both to make them easier to work with and to try to avoid having to bump them up again in 2025, when the next inflation adjustment may occur. Regulators might be concerned that a bank didn’t evaluate the risk of experiencing greater bad check losses when making such large increases in the availability amounts.

First published on 08/22/2021

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