CUNA Regulatory Comment Call

January 14, 2000

Possible Reduction In Return-Time On Dishonored ACH Returns

(Major Rule)


NACHA proposes to amend the NACHA Operating Rules to shorten the time frame for returning dishonored returns to two banking days from the settlement date of the dishonored return entry. Receiving depository financial institution (RDFIs) that receive a dishonored return from the originating depository financial institution (ODFI) would have to transmit a corrected return within two banking days to the ACH Operator.

Comments are due by February 11, 2000. Please submit your comments to CUNA by February 4, 2000. Please feel free to fax your responses to CUNA at 202-371-8240; e-mail them to Associate General Counsel Mary Dunn at or to Assistant General Counsel Michelle Profit at or mail them to Mary or Michelle in c/o CUNA’s Regulatory Advocacy Department, 805 15th Street, NW, Suite 300, Washington, DC 20005.

NACHA has prepared its own survey that it would like financial institutions to complete on the proposed rule change.


An ODFI may return an ACH transaction that the RDFI has returned. The ODFI may send this dishonored return for two reasons: the RDFI has failed to return the entry within the deadline or the RDFI’s return entry contains incorrect or missing information. If the ODFI sends the dishonored return because the RDFI missed the return deadline, then the RDFI only has two banking days from settlement to send another return. If the ODFI sends the RDFI a dishonored return because the return has missing or incorrect information, then the RDFI currently must send the corrected return within five banking days of settlement for the dishonored return. The new rule would reduce the time the RDFI has to send a corrected return to two banking days from the settlement date of the dishonored return. An ODFI has five banking days from the settlement date of the return entry to send to its ACH Operator either type of dishonored return entry.

NACHA Operating Rules Work Group #48 has recommended this change. The group believes that this change would reduce risk in the ACH system and complement previous efforts to reduce the time frames for returns. The proposed implementation date for any change is June 16, 2000.


Leagues and credit unions should feel free to fax their responses to CUNA at 202-371-8240 or e-mail them to Michelle Profit at Thank you!!

Eric Richard • General Counsel • (202) 508-6742 •
Mary Mitchell Dunn • SVP & Associate General Counsel • (202) 508-6736 •
Jeffrey Bloch • Assistant General Counsel • (202) 508-6732 •
Catherine Orr • Senior Regulatory Counsel • (202) 508-6743 •