Cash Items' Payment Proceeds Deadline

ABC

The correct answer is (C) "Such other time as provided in the Reserve Bank's operating circulars."

The term "crcm" in the question refers to the Certified Regulatory Compliance Manager certification, which is offered by the American Bankers Association (ABA). However, this question seems to be related to banking operations and the Federal Reserve System.

When a bank receives a cash item (such as a check), it needs to send it to the Federal Reserve Bank for processing. The Federal Reserve Banks act as the central bank of the United States and provide financial services to banks and other financial institutions.

To ensure that the payment process runs smoothly, there are specific rules that banks need to follow. One of these rules is related to the availability of payment proceeds. The paying bank needs to ensure that the payment proceeds are available to the Reserve Bank by a certain time.

Option A states that the payment proceeds must be available by the next clock hour after the hour the paying bank receives the item. This is incorrect because there is no specific rule that requires payment proceeds to be available by the next clock hour. This option is not consistent with the Federal Reserve's guidelines.

Option B states that payment proceeds must be available by 9:30 A.M. Eastern time. This is also incorrect because there is no specific rule that requires payment proceeds to be available by 9:30 A.M. Eastern time. This option is not consistent with the Federal Reserve's guidelines.

Option C states that payment proceeds must be available by the time specified in the Reserve Bank's operating circulars. This is the correct answer. The Federal Reserve issues operating circulars that provide guidelines for banks on various topics, including payment processing. The operating circulars specify the time by which payment proceeds must be available to the Reserve Bank.

Option D states that both options A and B are correct. This is incorrect because neither option A nor option B is consistent with the Federal Reserve's guidelines. Therefore, the correct answer is (C) "Such other time as provided in the Reserve Bank's operating circulars."