How long must an Originator retain a copy of the front and back of the item related to an RCK Entry from the Settlement Date?

How long must an Originator retain a copy of the front and back of the item related to an RCK Entry from the Settlement Date?

• A. Three years
• B. Five years
• C. Seven years
• D. Ten years

Answer: (C)

The correct duration for which an Originator must retain a copy of the front and back of an item related to an RCK (Re-presented Check) Entry is seven years from the Settlement Date. This retention requirement is established to ensure that there is a verifiable record of the transaction in case of disputes, audits, or fraud investigations. This long retention period underscores the need for thorough documentation in the ACH process, as it helps maintain compliance with regulatory obligations and provides evidence if necessary. Options suggesting shorter retention periods do not align with the regulatory requirements, as they would not provide sufficient time for institutions to resolve potential issues that might arise after the transaction has been processed. Similarly, choices that propose longer retention periods exceed the established guidelines set forth by NACHA, the organization responsible for governing the ACH network, which clearly outlines the seven-year requirement for RCK Entries.

The correct duration for which an Originator must retain a copy of the front and back of an item related to an RCK (Re-presented Check) Entry is seven years from the Settlement Date. This retention requirement is established to ensure that there is a verifiable record of the transaction in case of disputes, audits, or fraud investigations. This long retention period underscores the need for thorough documentation in the ACH process, as it helps maintain compliance with regulatory obligations and provides evidence if necessary.

Options suggesting shorter retention periods do not align with the regulatory requirements, as they would not provide sufficient time for institutions to resolve potential issues that might arise after the transaction has been processed. Similarly, choices that propose longer retention periods exceed the established guidelines set forth by NACHA, the organization responsible for governing the ACH network, which clearly outlines the seven-year requirement for RCK Entries.