Accredited ACH Professional (AAP) Practice Exam

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What is the deadline for the RDFI to initiate an NOC?

1 banking day
2 banking days
3 banking days
5 banking days

The correct answer is: 2 banking days

The correct answer is a deadline of 2 banking days for the Receiving Depository Financial Institution (RDFI) to initiate a Notification of Change (NOC). This requirement is in place to ensure prompt communication about changes needed for recurring payment transactions. An NOC allows the RDFI to alert the Originating Depository Financial Institution (ODFI) of errors such as incorrect account information, thereby facilitating timely corrections and maintaining the accuracy of the ACH transaction process. The 2 banking day period emphasizes the importance of quickly addressing any discrepancies to minimize disruption to both the parties involved in the transaction. This timeframe is vital for keeping the ACH system efficient and reliable.