ACH Operations for the RDFI Flashcards
Governs clearing and settlement of ACH debit and credit Entries.
Federal Reserve Operating Circular No. 4
Federal Reserve Operating Circular No. 4
- Governs clearing and settlement of ACH Debit and credit entries.
- Incorporates Nacha Rules and agreements.
- For financial institutions using Federal Reserve Bank as its ACH Operator
Payments of Federal Taxes
31 CFR Part 203
Federal Government Participation in the ACH
31 CFR Part 210
Tax Payment Banking Convention
TXP
Third-Party Banking Convention
TPP
Child Support Banking Convention
DED
Covers rules associated with protecting rights of individual consumers engaging in electronic fund transfers.
Regulation E
What year was Electronic Funds Transfer Act created?
1978
What is the name given to the set of rules that cover wholesale commercial credits?
Uniform Commercial Code Article 4A
Uniform Commercial Code Article 4A
- Related to commercial wires and ACH Entries
- Pertains generally to wholesale commercial credits
- Copy can be found in Appendix A of Regulation J
- Requires notice to the Receiver
Covers rules governing Federal Government ACH Payments
Treasury Green Book
RDFI Key Data Elements
- Batch Header Info.
- Trace Number
- Transaction Code
- Routing Number
- Check digit
- Account Number
- Dollar amount
- Individual ID
- Receiver’s name
Must be sent at least three banking days before the first live dollar entry
Prenotes
How often does an RDFI require to conduct an audit?
Annually by December 31st
RDFIs are required to register their contact info with Nacha for personnel or departments responsible for ACH operations and fraud/risk management.
ACH Contact Registry/ recommended to audit annually
When must an RDFI notify OFAC For credit Entries that are a match against OFAC’S SDN list?
Within 10 days
How often must Consumer statements be provided if RDFI is receiving EFTs.
At least monthly per Reg E
Credit Same Day Entries received in 1st same-day processing window must be made available for withdrawal by?
1:30 pm (RDFI Local Time)
Credit Same Day Entries received in 2nd same-day processing window must be made available for withdrawal by?
5:00 pm (RDFO Local Time)
Credit Same Day Entries received in 3rd same-day processing window must be made available for withdrawal by ?
End of business (RDFI Local Time)
Next-day credit entries must be made available to RDFI by?
5:00 pm (RDFI Local time) on Banking Day prior to settlement date
must be made available for withdrawal no later than 9:00 am (RDFI local time)
Next-day credit entries must be made available for withdrawal no later than?
9:00 am (RDFI local time)
Can debit entries be posted before the Settlement Date?
No
Remittance information processing applies to?
CCD, CTX, CIE and IAT posting to Non-consumer accounts only
RDFI is obligated to provide remittance information by?
- Opening of business on second Banking Day following Settlement Date.
- Must have ability to provide electronically for “HCCLAIMPMT”
- May Charge for this service.
For a DNE, RDFI should prevent future federal government benefit payments from posting and…
Return next payment - if received.
DNE Federal government benefit payments must include what in the Addenda record?
- Date of death.
- Social Security Number.
- Amount of next payment
If a stop payment is given orally, RDFI may require written confirmation within?
14 Days
Stop payments remains in effect for non-consumers for how long?
six months unless renewed in writing
Stop payments remains in effect for consumer accounts until earlier of…
- Withdrawal of stop payment order by receiver
- Return of debit entry.
ACH Payment Acknowledgement
ACK
Financial EDI Acknowledgement
ATX
Indicates that RDFI has received entries and will attempt to post CCD/CTX credits to non-consumer account.
Acknowledgement Entry (ACK) (ATX)
RDFI must transmit a NOC within how many days?
2 banking days of settlement date
What Act passed by congress in the 1970s resulted in Regulation E being written by the Federal Reserve Bank?
Electronic Funds Transfer Act
The place where the ACH Operator sends the ACH entries it processes?
Receiving Point
At what time must PPD credit entries be available for the RDFI to be obligated to make the funds available at the opening of business on the settlement date?
5:00 pm RDFI’s local time on the day before the settlement date.
Returns and Notifications of Change are sometimes called?
Exception Entries
Which Federal Reserve regulations defines a “non-transaction” account?
Regulation D
