What is the time limit for an RDFI liability after receiving notice of death?

What is the time limit for an RDFI liability after receiving notice of death?

• A. 30 calendar days
• B. 45 calendar days
• C. 90 calendar days
• D. 60 calendar days

Answer: (B)

In the context of ACH transactions and the responsibilities of Receiving Depository Financial Institutions (RDFIs), the time limit for liability following notification of a customer's death is indeed 45 calendar days. This regulation outlines that once an RDFI is informed of a customer's death, it has a specified period within which it should act concerning any outstanding transactions or issues that arise as a result of that notice. After this 45-day window, the RDFI’s liability for transactions that may have been executed after the notice period can diminish, as the financial institution is expected to have taken appropriate measures during that allotted time to address any unauthorized or improperly executed transactions. Understanding this timeframe is crucial for managing compliance and customer service regarding deceased account holders. In this case, a choice indicating 90 days or any other option would extend the liability period beyond what is currently established, which does not align with the regulations set out in the NACHA Operating Rules.

In the context of ACH transactions and the responsibilities of Receiving Depository Financial Institutions (RDFIs), the time limit for liability following notification of a customer's death is indeed 45 calendar days. This regulation outlines that once an RDFI is informed of a customer's death, it has a specified period within which it should act concerning any outstanding transactions or issues that arise as a result of that notice.

After this 45-day window, the RDFI’s liability for transactions that may have been executed after the notice period can diminish, as the financial institution is expected to have taken appropriate measures during that allotted time to address any unauthorized or improperly executed transactions. Understanding this timeframe is crucial for managing compliance and customer service regarding deceased account holders.

In this case, a choice indicating 90 days or any other option would extend the liability period beyond what is currently established, which does not align with the regulations set out in the NACHA Operating Rules.