Regulation J

AAA

DEFINITION of 'Regulation J'

A regulation set forth by the Federal Reserve. Regulation J establishes the core guidelines for the processing of checks and other cash instruments for Federal Reserve Banks, senders and payers of checks, and recipients and senders of Fedwire funds. It also allows for these items to be settled on a net basis.

INVESTOPEDIA EXPLAINS 'Regulation J'

Regulation J also stipulates the collection framework for sent checks for banks or depository institutions. It also describes the procedure for presentation to a paying bank as well as the return of items that are unpaid. Member banks of the Federal Reserve also periodically publish operating circulars that serve as supplements to the Regulation.

RELATED TERMS
  1. Regulation 9

    A regulation that permits national banks to open and operate ...
  2. Regulation CC

    One of the banking regulations set forth by the Federal Reserve. ...
  3. Regulation AA

    A regulation designed to address practices by banks that are ...
  4. Regulation B

    A regulation intended to prevent discrimination against applicants ...
  5. Regulation C

    A regulation that implements the Home Mortgage Disclosure Act ...
  6. Financial Instrument

    A real or virtual document representing a legal agreement involving ...
Related Articles
  1. Fundamental Analysis

    Analyzing A Bank's Financial Statements

    A careful review of a bank's financial statements can help you identify key factors in a potential investment.
  2. Credit & Loans

    The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  3. Forex Education

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  4. Personal Finance

    How The Federal Reserve Was Formed

    Find out how this institution has stabilized the U.S. economy during economic downturn.
  5. Retirement

    What Was The Glass-Steagall Act?

    Established in 1933 and repealed in 1999, the Glass-Steagall Act had good intentions but mixed results.
  6. Economics

    What’s Driving U.S. Stocks? Irony.

    A seesaw week for U.S. stocks ended on the upside last week, though the rally was more a function of slow growth rather than a booming economy.
  7. Investing

    Crowdfunding: Wide Opening For Tech Investors

    Crowdfunding has dramatically changed investing and opened the door for the public to get in on all types of exciting startups, including tech firms.
  8. Economics

    What Do You Need To Know About Inflation?

    When it comes to inflation, there is no shortage of opinions: one side argues the Fed should raise rates, and the opposition says the Fed should stay put.
  9. Economics

    Mitigation Trade: Making Up For Environmental Harm

    Mitigation banking is a system by means of which the liability of ecological damage is transferred from the permittee to the mitigation banker through a system of credits and debits under regulatory ...
  10. Economics

    Worried About The Fed Hike?

    With the Nasdaq crossing the threshold and the broader equity bull market entering its 7th year, many investors are anxious that stocks are in a bubble.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center