In the event of a reclamation entry, how many banking days does the originator have to make a demand for payment?

In the event of a reclamation entry, how many banking days does the originator have to make a demand for payment?

• A. 10 Banking Days
• B. 15 Banking Days
• C. 30 Banking Days
• D. 5 Banking Days

Answer: (B)

The correct answer is based on the rules governing reclamation entries within the ACH framework. When a participant in the ACH network, such as the originator, needs to reclaim funds due to a situation like a deceased account holder, the originator must act within a specific timeline. In this case, the originator has 15 banking days to make a demand for payment of the reclamation entry. This period of 15 banking days allows the originator to engage in the reclamation process effectively, ensuring that there is sufficient time to handle the necessary administrative tasks involved in reclaiming funds that may have already been paid out based on an erroneous or invalid ACH debit. It is crucial for maintaining proper accounting and cash flow within the organization, as well as ensuring compliance with regulatory standards. Understanding the importance of this timeframe is essential for those working in operations or compliance in financial institutions, as it helps to reinforce the integrity of ACH transactions and the overall efficiency of the payments system.

The correct answer is based on the rules governing reclamation entries within the ACH framework. When a participant in the ACH network, such as the originator, needs to reclaim funds due to a situation like a deceased account holder, the originator must act within a specific timeline. In this case, the originator has 15 banking days to make a demand for payment of the reclamation entry.

This period of 15 banking days allows the originator to engage in the reclamation process effectively, ensuring that there is sufficient time to handle the necessary administrative tasks involved in reclaiming funds that may have already been paid out based on an erroneous or invalid ACH debit. It is crucial for maintaining proper accounting and cash flow within the organization, as well as ensuring compliance with regulatory standards.

Understanding the importance of this timeframe is essential for those working in operations or compliance in financial institutions, as it helps to reinforce the integrity of ACH transactions and the overall efficiency of the payments system.