NACHA Update: Providing Faster Funds Availability Rule

8/23/2019 - By Janice Weisz, AAP

Effective September 20, 2019, the Faster Funds Availability Rule will provide faster funds availability for many ACH credits.  This new Rule increases the speed of funds availability for certain Same Day ACH and next-day ACH credits.

Rule Requirements

  • For Same Day ACH Credits
    • Funds from Same Day ACH credits processed in the first processing window will be made available to the Receiver for withdrawal by 1:30 p.m., RDFI local time.
    • Funds from Same Day ACH credits processed in the second processing window will continue to be made available to the Receiver for withdrawal by 5:00 p.m., RDFI local time.
  • For non-Same Day ACH Credits
    • Funds from non-Same Day ACH credits (regardless of SEC Code) will be made available to the Receiver for withdrawal by 9:00 a.m. RDFI’s local time on the Settlement Date, if the credits were available to the RDFI by 5:00 p.m. local time on the previous day (i.e., apply the existing “PPD Rule” to all ACH credits).
    • Funds for those non-Same Day ACH credits made available to the RDFI after 5:00 p.m. local time on the previous day must be made available to the Receiver for withdrawal no later than the end of the Settlement Date.

RDFIs

  • RDFIs need to update their internal processing applications and procedures to accommodate these processing timeframe requirements. 

ODFIs, Originators, Third-Party Senders, and Third-Party Service Providers 

  • These ACH participants should be aware of the different timeframes that the funds for Same Day ACH Credits and certain non-Same Day ACH credits will be available to Receivers.

For more information, you can visit the NACHA website.

Staying in compliance can be challenging. If you have any questions or need assistance preparing for these new NACHA Rules, email me or a member of our Financial Institutions Team so we can help. 

About the Author | Janice Weisz, AAP
Janice is a consultant in the Financial Institution Advisory Group at Saltmarsh, Cleaveland & Gund. Janice has been working with financial institutions since 2001 with an emphasis on operations, compliance, audit and internal controls. She currently provides ACH compliance, internal audit, NACHA compliance, and other consulting services to the firm’s financial institution industry clients.


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