Citibank: 7 days notice before checking withdrawals?

I got this announcement on my latest Citibank statement:

Are other banks issuing similar statements? What does this really mean?

I heard about this on the news this morning. The federal government requires them to notify you that they have the right to require 7 days’ notice, it’s not a Citibank policy. Citibank says they’ve never actually required it and have no intention to do so. I suppose that small banks may need notice to handle extraordinarily large cash withdrawals, or something like that.

More on this. I may have oversimplified, but it also seems like Citibank sent this to customers who are not actually affected:

I’m not clear on whether this is a Citibank-unique policy or if other banks also have this policy. I understand that the requirement of the notice stems from reclassifying checking accounts due to the FDIC coverage… but that would make one think that other banks would also have to send out similar notices if they also have a policy of reserving the ability to have a 7 day hold period.

According to this thread from Fatwallet, it’s a common thing.