What is the time period for originating an NOC after the original entry's settlement date?

What is the time period for originating an NOC after the original entry's settlement date?

• A. 1 Banking Day
• B. 2 Banking Days
• C. 5 Banking Days
• D. 30 Banking Days

Answer: (B)

The correct answer is 2 Banking Days because the National Automated Clearing House Association (NACHA) guidelines state that a Notice of Change (NOC) must be originated within two banking days following the settlement date of the original entry. This timeframe allows the originating depository financial institution (ODFI) to correct or update information associated with the entry efficiently, ensuring that any necessary changes, such as adjustments to account numbers or banking information, are communicated promptly. Adhering to this two-day requirement helps ensure that the transactions remain accurate and minimizes the risk of errors in the payment process. This is essential in maintaining the integrity of the ACH network and providing dependable service to both consumers and businesses alike.

The correct answer is 2 Banking Days because the National Automated Clearing House Association (NACHA) guidelines state that a Notice of Change (NOC) must be originated within two banking days following the settlement date of the original entry. This timeframe allows the originating depository financial institution (ODFI) to correct or update information associated with the entry efficiently, ensuring that any necessary changes, such as adjustments to account numbers or banking information, are communicated promptly. Adhering to this two-day requirement helps ensure that the transactions remain accurate and minimizes the risk of errors in the payment process.

This is essential in maintaining the integrity of the ACH network and providing dependable service to both consumers and businesses alike.