Fed looking for help in processing cash

Northwestern Financial Review, Mar 15, 2002

The Federal Reserve said its resources are increasingly taxed by banks' growing habit of placing currency on deposit with the central bank, and it plans to call on bankers to figure out a solution. The Fed counts deposited currency to confirm it matches the bank's own count. Since banks count the money before sending it to the Fed, there is some duplication of effort.

The Fed also weeds out counterfeit bills and shreds any bills that are deemed unfit for re-circulation. The Fed estimates it will spend about $200 million over the next 10 years processing money banks place on deposit.