The US central bank will stop paying interest on special bank accounts

The US central bank wants to stop paying interest on certain bank accounts. These 'special-purpose payment accounts' are used for specific transactions, and banks will no longer earn passive income on the money held in them.

Banks currently earn interest on all funds they hold at the US central bank. This proposal removes that income stream for specific types of accounts. Banks will now have to decide if they want to keep these funds at the central bank without earning interest, or move them elsewhere.