Are You Ready for Nacha's Set of Meaningful Modernization Rules?


Nacha’s Meaningful Modernization consists of five new Rules, all of which become effective September 17, 2021. Nacha designed the Meaningful Modernization Rules to improve and simplify the ACH-user experience for businesses and customers by:

  • Facilitating the adoption of new technologies and channels for the authorization and initiation of ACH payments
  • Reducing barriers to use the ACH Network
  • Providing clarity and increasing consistency around certain ACH authorization processes 
  • Reducing certain administrative burdens related to ACH authorizations

Overview of the Five New Rules

  1. The “Standing Authorization Rule” will explicitly define the use of standing authorizations for consumer ACH debits
  2. The “Oral Authorizations Rule” will define and allow for oral authorization of consumer ACH debits beyond telephone calls
  3. The “Other Authorization Issues Rule” will clarify and provide greater consistency of ACH authorization standards across payment initiation channels
  4. The “Alternative to Proof of Authorization Rule” will reduce the administrative burden of providing proof of authorization
  5. The “Written Statement of Unauthorized Debit via Electronic or Oral Methods Rule” will better facilitate the use of electronic and oral Written Statements of Unauthorized Debit

Each of these Rules will become effective September 17, 2021. Click on the links above for more information on each of these upcoming Rules.


Staying in compliance can be challenging, so if you have any questions or need assistance, email or a member of our Financial Institutions Team so we can help. 

About the Bank Advisors

The Bank Advisors at Saltmarsh have provided audit, tax and consulting services to a wide range of financial institutions since our founding in 1944, making it the firm’s largest specialty practice and industry of focus. Our Financial Institution Advisory Group has the talent, expertise and insight to help you and your institution thrive. Our team members are also industry leaders who have the knowledge and experience to provide you with unparalleled service and guidance.

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