Q: Since IDIs can now pay interest on DDAs, can IDIs still offer NOW account products?
A: Yes. Congress did not abolish or change the law regarding NOW accounts when it enacted
Section 627. The laws (e.g., 12 U.S.C. 1832) and regulations (e.g., 12 C.F.R. § 204.130)
regarding NOW accounts remain intact without any modifications. IDIs can still offer
NOW account products to eligible customers – individuals, nonprofit organizations and
governmental units. For-profit entities are not eligible to own NOW accounts.
This can be found in - FAQ#20 of FDIC’s FAQs. FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf