Intraday loan that occurs when a bank transfers funds in excess of its Reserve Account. Daylight overdrafts are caused when banks transfer funds in excess of reserve account balances at a Federal Reserve Bank. Since 1994 Federal Reserve Banks have charged banks a processing fee for daylight overdrafts. See also Bilateral Credit Limit; Net Settlement; Sender Net Debit Cap.
Daylight Overdraft
| Banking Dictionary: Daylight Overdraft |
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 | Overdraft Cap (in banking) |
| Exposure (in banking) |
| Sender Net Debit Cap (in banking) |
 | How old do you have to be to get a overdraft? Read answer... |
| What is a bank overdraft? Read answer... |
| What is authorised overdraft? Read answer... |
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 | Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Overdraft Cap (in banking)
- Exposure (in banking)
- Sender Net Debit Cap (in banking)
- Bilateral Credit Limit (in banking)
- Cap (in banking)
- Overdraft (in banking)
- Daylight overdraft
- Clearing House Automated Transfer System
