ABA Banking Journal, June 25, 2020: Podcast: OCC’s Brooks Plans to Unveil ‘Payments Charter 1.0’ This Fall
The OCC is planning to unveil what Acting Comptroller Brian Brooks called “payments charter 1.0” as soon as this fall, Brooks said on the latest episode of the ABA Banking Journal Podcast, sponsored by Jack Henry. Version 1.0 would be a “national version of a state money transmission license” offering nonbank payment providers a “national platform with preemption,” but not access to the Federal Reserve’s payments system. After about 18 months of operating under version 1.0, Brooks said, the agency would roll out version 2.0, which he anticipates would include direct Fed access.
In recent interviews, Brooks has touted the idea of using the OCC’s authority to grant special-purpose national bank charters to charter payments companies. On the ABA Banking Journal Podcast, Brooks provided more details about the financial inclusion requirements these charters would entail to provide consistency across depository and non-depository institutions.
