H.R. 3240, Regulation D Study Act

H.R. 3240

Regulation D Study Act

December 2, 2014 (113th Congress, 2nd Session)

Staff Contact

Floor Situation

On Tuesday, December 2, 2014, the House will consider H.R. 3240, the Regulation D Study Act, under a suspension of the rules.  H.R. 3240 was introduced on October 3, 2013 by Rep. Robert Pittenger (R-NC) and referred to the Committee on Financial Services, which ordered the bill reported by voice vote.

Bill Summary

H.R. 3240 directs the GAO to conduct a comprehensive study on the impact on depository institutions, consumers, and monetary policy of the requirement that depository institutions maintain certain reserves in accordance with the Federal Reserve Act and Regulation D.  In conducting the study, the GAO is required to include: 1) an historic review of how the Board of Governors of the Federal Reserve System has used reserve requirements to conduct U.S. monetary policy; 2) the impact of the maintenance of reserves upon depository institutions; 3) the impact upon consumers in managing their accounts; and 4) alternatives available to the Board to maintain reserves to effect monetary policy.

In conducting the study, the Comptroller General of the GAO is required to consult within credit unions and community banks.  Within one year of enactment of this legislation, the GAO is required to submit a report to Congress containing the results of the study and any recommendations based upon the study.


Depository Institutions (DIs) are any financial institution that receives monetary deposits from consumers (e.g. banks, credit unions, and savings and loans operations).  Regulation D imposes reserve requirements on certain deposits and liabilities of depository institutions.  “Currently, DIs must hold reserves equal to 3 percent of applicable deposits greater than $13.3 million, plus an additional 7 percent for total deposits greater than $89 million.” [1] As a result, consumers are limited to six monthly remote transfers between their checking and savings accounts.[2]  H.R. 3240 would direct the GAO to recommend commonsense changes that would take into account the increased use of online banking transactions.[3]

[1] http://www.cbo.gov/sites/default/files/hr3240_0.pdf
[2] http://pittenger.house.gov/media-center/press-releases/pittenger-truly-obsolete-regulations-hinder-online-banking
[3] See Id.


CBO estimates that implementing this legislation would cost less than $500,000 over the next five years, subject to the availability of appropriated funds.[4]  Enacting this legislation would not affect direct spending or revenues.[5]

[4] http://www.cbo.gov/sites/default/files/hr3240_0.pdf
[5] See Id.

Additional Information

For questions or further information contact the GOP Conference at 5-5107.