In batched ACH transactions, who is not responsible for unbatching for compliance?

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Multiple Choice

In batched ACH transactions, who is not responsible for unbatching for compliance?

In batched ACH transactions, unbatching for compliance is done by the Receiving Depository Financial Institution (RDFI) when it receives the batch from the ACH Operator. The RDFI breaks the batch into individual entries and screens each item for compliance issues (such as authorization, sanctions checks, and posting accuracy) before posting to accounts or returning/rejecting items. The Originating Depository Financial Institution (ODFI) originates and sends the batch and is responsible for ensuring its batch complies with NACHA rules before transmission, but it does not perform the unbatching for compliance on the receiving end. So, the entity not responsible for unbatching for compliance is the ODFI.

In batched ACH transactions, unbatching for compliance is done by the Receiving Depository Financial Institution (RDFI) when it receives the batch from the ACH Operator. The RDFI breaks the batch into individual entries and screens each item for compliance issues (such as authorization, sanctions checks, and posting accuracy) before posting to accounts or returning/rejecting items. The Originating Depository Financial Institution (ODFI) originates and sends the batch and is responsible for ensuring its batch complies with NACHA rules before transmission, but it does not perform the unbatching for compliance on the receiving end. So, the entity not responsible for unbatching for compliance is the ODFI.

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