The Federal Reserve is inviting public comment on a proposal to create limited "payment accounts" for certain financial institutions, including fintech companies. Announced on December 19, these accounts would enable institutions to access the Fed's payment services for clearing and settlement, while not extending the full privileges of traditional bank accounts. Fed Governor Waller emphasized that these accounts could foster innovation while maintaining payment system security. These proposed accounts would be separate from the Fed's main accounts, would not accrue interest, and would not offer Fed credit services. They would also be subject to balance limits. The concept, initially suggested by Waller in October, aims to balance broader access to Fed services for fintechs without granting them full banking privileges.