Temporary Suspension of Reclamation Debits Scheduled to End August 17, 2020

8/4/2020 - By Janice Weisz, AAP

The Bureau of the Fiscal Service (Fiscal Service) will remove the suspension that was instituted on April 2, 2020, regarding the process of debiting a Receiving Depository Financial Institution’s (RDFI) Federal Reserve Bank (FRB) master account. Effective August 17, 2020, the suspension will be lifted, and reclamations that do not receive a response within 60 days will be debited according to the Green Book and 31 CFR 210.

Reclamation is a procedure used by the federal government to recover benefit payments made through the Automated Clearing House (ACH) Network to the account of a recipient who died or became legally incapacitated or a beneficiary who died before the date of the payment(s). A RDFI has up to 60 calendar days from the issue date of the reclamation to provide a full and accurate response to the proper government disbursing office. Failure to respond in a timely manner may result in a debit to the RDFI’s FRB account or the account of its correspondent for the total amount of the reclamation.

Financial institutions should continue to process and respond to reclamation notices. Please note that Fiscal Service will continue to process debits for reclamation of liability amounts, financial institution debit authorizations, ACH returns as a result of death, and checks received from financial institutions for amounts owed due to reclamations.


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

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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, NACHA compliance, internal audit and other consulting services to the firm’s financial institution industry clients.

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