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Fed to Allow Banks to Pay Interest on Demand-Deposit Accounts

The Federal Reserve has adopted a rule allowing member banks of the Fed system to pay interest on demand-deposit accounts.

The rule implements a provision of the Dodd-Frank Act, the law enacted last year that revamps financial regulations in response to the financial crisis.

The rule takes effect on July 21, the central bank said in a statement today in Washington.

To contact the reporter on this story: Jeannine Aversa in Washington at javersa@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

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