How may an ODFI request an RDFI to return or adjust an Erroneous Entry?

How may an ODFI request an RDFI to return or adjust an Erroneous Entry?

• A. Only in writing
• B. Orally or in writing
• C. Only electronically
• D. Through a third party

Answer: (B)

An ODFI (Originating Depository Financial Institution) can request an RDFI (Receiving Depository Financial Institution) to return or adjust an erroneous entry either orally or in writing. This flexibility allows for quicker communication and resolution of issues that may arise regarding ACH transactions. The ability to make such a request orally is particularly useful in time-sensitive situations, enabling the ODFI to address errors immediately rather than waiting for formal written correspondence. However, having the option to provide a written request ensures that there is a clear record of the transaction and the request for adjustments, which can be important for compliance and auditing purposes. This approach supports efficient handling of erroneous entries and aligns with the principles of communication and collaboration between financial institutions in the ACH network.

An ODFI (Originating Depository Financial Institution) can request an RDFI (Receiving Depository Financial Institution) to return or adjust an erroneous entry either orally or in writing. This flexibility allows for quicker communication and resolution of issues that may arise regarding ACH transactions.

The ability to make such a request orally is particularly useful in time-sensitive situations, enabling the ODFI to address errors immediately rather than waiting for formal written correspondence. However, having the option to provide a written request ensures that there is a clear record of the transaction and the request for adjustments, which can be important for compliance and auditing purposes.

This approach supports efficient handling of erroneous entries and aligns with the principles of communication and collaboration between financial institutions in the ACH network.