Which procedure must an RDFI follow regarding requests from ODFIs?

Which procedure must an RDFI follow regarding requests from ODFIs?

• A. Provide a detailed report quarterly
• B. Respond to requests within one week
• C. Fulfill written requests within two years
• D. Provide documentation on demand

Answer: (C)

The correct procedure for a receiving depository financial institution (RDFI) regarding requests from originating depository financial institutions (ODFIs) is to fulfill written requests within two years. This requirement stems from regulatory and operational guidelines that govern the handling of ACH transactions and records. RDFIs are required to retain records pertaining to ACH transactions for a specific period, typically two years. This ensures that if an ODFI contacts an RDFI regarding a transaction, the RDFI must be able to retrieve relevant documentation to support their responses or to resolve any inquiries that may arise about previous transactions. This two-year window is in place to maintain transparency and facilitate effective communication between parties involved in ACH processes. In contrast, the other options do not align with established regulations for RDFIs regarding ODFIs. Providing a detailed report quarterly, responding to requests within one week, or providing documentation on demand do not reflect the required timeframes or obligations set forth for these interactions. Therefore, the two-year requirement for fulfilling written requests is the accurate answer reflecting the standards set within the ACH network.

The correct procedure for a receiving depository financial institution (RDFI) regarding requests from originating depository financial institutions (ODFIs) is to fulfill written requests within two years. This requirement stems from regulatory and operational guidelines that govern the handling of ACH transactions and records.

RDFIs are required to retain records pertaining to ACH transactions for a specific period, typically two years. This ensures that if an ODFI contacts an RDFI regarding a transaction, the RDFI must be able to retrieve relevant documentation to support their responses or to resolve any inquiries that may arise about previous transactions. This two-year window is in place to maintain transparency and facilitate effective communication between parties involved in ACH processes.

In contrast, the other options do not align with established regulations for RDFIs regarding ODFIs. Providing a detailed report quarterly, responding to requests within one week, or providing documentation on demand do not reflect the required timeframes or obligations set forth for these interactions. Therefore, the two-year requirement for fulfilling written requests is the accurate answer reflecting the standards set within the ACH network.