1. Short title This Act may be cited as the Federal Reserve Accountability and Justification Act . 2. Payment services Section 11A of the Federal Reserve Act ( 12 U.S.C. 248a ) is amended by adding at the end the following: (f) Payment service (1) In general The Board may not provide any new payment service, or substantially change or expand any existing payment service unless the Board determines that— (A) any costs associated with such service will be recovered; (B) providing such service will yield a clear public benefit, such as promoting the integrity of the payments system, improving the effectiveness of financial markets, reducing the risk associated with payments and securities-transfer services, or improving the efficiency of the payments system; (C) no other providers can be expected to provide such service with reasonable effectiveness, scope, and equity; and (D) other providers are able to compete with the Federal Reserve Banks in offering such service, based on a competitive impact study. (2) Reasonable effectiveness, scope, and equity (A) In general For the purposes of paragraph 1(A), the Board shall determine that other providers can be expected to provide such service with reasonable effectiveness, scope, and equity if the Board has found that other providers— (i) offer a service that substantially performs the material functions of such service that the Board would provide and offer the service to member and nonmember depository institutions on nondiscriminatory terms, regardless of the size of the institution