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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Check Clearing for the 21st Century (Check 21 Act)

The FDIC has created this webpage to inform consumers about the new Check 21 law, which became effective on October 28, 2004. The Check Clearing for the 21st Century Act (Check 21 Act) is a federal law that is designed to enable banks to handle more checks electronically, which should make check processing faster and more efficient. Traditionally, banks often physically move original paper checks from the bank where the checks are deposited to the bank that pays them. This transportation can be inefficient and costly.

Check 21 affects check writers and depositors in the following ways:

Below are current links with information regarding Check 21:

FDIC Consumer News Articles
Brochure
Frequently Asked Questions about Check 21
Financial Institution Letters