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About Us
NCUIC is an emancipated council operating under the NACHA umbrella that develops and administer rules on interbank compensation governing the settlement of claims arising from payments and securities transactions between financial institutions.
NACHA – The Electronic Payments Association develops and enforces the rules for the Automated Clearing House (ACH) Network and for other electronic and check systems.
2008 NCUIC Members
Bank of America
Comerica Bank
Deutsche Bank
Mellon Bank
PaymentsNation
PNC Bank
UMB Bank
U.S. Bank
Wachovia
Wells Fargo
Western Payments Alliance (WesPay)
Wilmington Trust Company
NCUIC Objectives for 2008
- Address specific issues raised by the NCUIC rules:
- Review requirements on minimum compensation claims;
- Review requirements for timely submissions of claims and for expediting claims;
- Define “gray areas” in the rules; prioritize these areas; and work to clarify the areas in order of importance.
- Determine the relationship (and potential conflict with) the IFS (International Financial Settlement) rules.
- Explore issues with same day settlement and determine whether to pursue resolution of issues.
- Hold appropriate teleseminars or teleconferences on NCUIC rules and issues.
- Increase NCUIC membership.
- Expand information on the NCUIC website.
History
During the late 1970s, the growing volume of funds transfer business among financial institutions, often on behalf of their customers, brought compensation issues to the forefront. Many clearing houses and organizations had developed their own compensation rules to deal with claims arising from problems such as transfers received late or early, in the wrong amount, credited to the wrong account, etc. Rules for handling and settling the claims typically varied – sometimes extensively – and it was often difficult to resolve claims with other financial institutions.
In 1985, an ad-hoc committee, the Nationwide Task Force for Uniform Interest Compensation, was formed to establish uniform compensation rules. Setting aside their differences, committee members worked together in the common interest. Within one year, funds transfer rules were agreed to and adopted by all participants.
With this accomplished, rules for claims resulting from securities transactions and checks were developed for implementation in 1987 and 1990. These rules were also adopted by NACHA for claims arising for problems in exchange of ACH payments.
In 1987, a group was commissioned to review the possibilities of incorporating the committee into a permanent group. As a result, the National Council for Uniform Interest Compensation (NCUIC) was formed on May 31, 1989. NCUIC was managed by NACHA staff but remained a separate legal entity. In 2001, the NCUIC was subsumed into NACHA as an emancipated council, in order to extend the range of benefits to members.
NCUIC members include financial institutions and bank clearing houses. A member list will be posted shortly.
If you have questions on NCUIC matters, call Nancy Grant, Senior Director, NCUIC, at 703-561-3911. (Typical office hours: 9:00am-6:00pm ET.)
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