What is the maximum time allowed for an ODFI to respond to a request from the National Association regarding an Originator's Unauthorized Return Rate?

What is the maximum time allowed for an ODFI to respond to a request from the National Association regarding an Originator's Unauthorized Return Rate?

• A. Five Business Days
• B. Seven Banking Days
• C. Ten Banking Days
• D. Fourteen Business Days

Answer: (C)

The maximum time allowed for an ODFI (Originating Depository Financial Institution) to respond to a request from the National Association regarding an Originator's Unauthorized Return Rate is ten banking days. This timeframe is established to ensure that ODFIs address inquiries related to compliance with NACHA operating rules effectively and efficiently. The rationale for this specific duration is rooted in the importance of timely communication and the need to maintain the integrity of the ACH network. The ten banking days allow sufficient time for the ODFI to investigate the matters concerning an Originator's performance regarding unauthorized returns, which can have significant implications on their standing and operations within the ACH system. This requirement ensures that all stakeholders have the opportunity to address issues swiftly, thus promoting accountability and adherence to the regulatory framework within which ACH transactions operate.

The maximum time allowed for an ODFI (Originating Depository Financial Institution) to respond to a request from the National Association regarding an Originator's Unauthorized Return Rate is ten banking days. This timeframe is established to ensure that ODFIs address inquiries related to compliance with NACHA operating rules effectively and efficiently.

The rationale for this specific duration is rooted in the importance of timely communication and the need to maintain the integrity of the ACH network. The ten banking days allow sufficient time for the ODFI to investigate the matters concerning an Originator's performance regarding unauthorized returns, which can have significant implications on their standing and operations within the ACH system.

This requirement ensures that all stakeholders have the opportunity to address issues swiftly, thus promoting accountability and adherence to the regulatory framework within which ACH transactions operate.