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The Federal Reserve Board announced the approval of policy changes that seek to reduce the overuse of Federal Reserve Bank cash-processing services by providing incentives for depository institutions to recirculate currency among their customers. It is estimated the cash services policy could affect as many as 225 depository institutions with high-volume currency operations. The changes are intended to reverse a shift by depository institutions away from traditional patterns of currency activity, toward greater reliance on Reserve Bank cash processing. To promote the recirculation of fit Federal Reserve notes by depository institutions, two elements have been added to the existing cash services policy. First, a custodial inventory program will permit ...