Fed advances 'skinny' payment accounts for nonbanks

The Federal Reserve has proposed a 'skinny' master account framework for nonbanks, allowing limited access to its payment systems. The proposal includes a cap of $1 billion on closing balances and a temporary pause on access requests from Tier 3 institutions until public feedback is considered. While the framework aims to clarify access, concerns about oversight and potential misuse remain. The Fed is expected to finalize the guidance by the end of the year, with industry participants invited to comment on the proposal.