How long must a copy of an XCK be retained?

How long must a copy of an XCK be retained?

• A. 1 year
• B. 2 years
• C. 10 years
• D. 6 years

Answer: (D)

The retention period for a copy of an XCK transaction is established by the NACHA Operating Rules and related guidelines. Specifically, these rules stipulate that the originating depository financial institution (ODFI) must retain records for a period of six years from the date of the transaction. This duration ensures that there is a sufficient timeframe for resolving any disputes or issues related to the transaction, which could arise during that period. By retaining these records, financial institutions can provide the necessary documentation and oversight in the event of audits, compliance checks, or inquiries from customers or other institutions. This six-year retention policy is consistent with various regulatory requirements and best practices in the financial industry, ensuring that there is reliable documentation available for addressing any potential concerns that may surface post-transaction.

The retention period for a copy of an XCK transaction is established by the NACHA Operating Rules and related guidelines. Specifically, these rules stipulate that the originating depository financial institution (ODFI) must retain records for a period of six years from the date of the transaction. This duration ensures that there is a sufficient timeframe for resolving any disputes or issues related to the transaction, which could arise during that period. By retaining these records, financial institutions can provide the necessary documentation and oversight in the event of audits, compliance checks, or inquiries from customers or other institutions. This six-year retention policy is consistent with various regulatory requirements and best practices in the financial industry, ensuring that there is reliable documentation available for addressing any potential concerns that may surface post-transaction.