What is the required retention period for all ACH records by ODFI and RDFI?

What is the required retention period for all ACH records by ODFI and RDFI?

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

Answer: (B)

The correct retention period for all ACH records as mandated by NACHA (National Automated Clearing House Association) is indeed 6 years. This requirement applies to both Originating Depository Financial Institutions (ODFIs) and Receiving Depository Financial Institutions (RDFIs). The 6-year period is designed to ensure that all pertinent transaction information is available for audits, investigations, or any disputes that may arise concerning the ACH transactions. This extensive retention time allows financial institutions to maintain compliance with regulations and provides a historical reference for transaction inquiries, which may be essential for resolving discrepancies or managing risk. Keeping these records for a sufficient duration is critical for safeguarding consumer rights and maintaining the integrity of the ACH network.

The correct retention period for all ACH records as mandated by NACHA (National Automated Clearing House Association) is indeed 6 years. This requirement applies to both Originating Depository Financial Institutions (ODFIs) and Receiving Depository Financial Institutions (RDFIs). The 6-year period is designed to ensure that all pertinent transaction information is available for audits, investigations, or any disputes that may arise concerning the ACH transactions.

This extensive retention time allows financial institutions to maintain compliance with regulations and provides a historical reference for transaction inquiries, which may be essential for resolving discrepancies or managing risk. Keeping these records for a sufficient duration is critical for safeguarding consumer rights and maintaining the integrity of the ACH network.