Accredited ACH Professional (AAP) Practice Exam 2025 - Free AAP Practice Questions and Study Guide

The deadline for the Receiving Depository Financial Institution (RDFI) to respond to a Refused Notice of Change (NOC) is indeed five banking days. This timeframe is crucial because it allows the RDFI to promptly address discrepancies in account information provided by the Originating Depository Financial Institution (ODFI).

When a Refused NOC is issued, it indicates that the RDFI does not agree with the changes proposed by the ODFI, which could involve issues such as incorrect account numbers or other relevant details. Responding within five banking days ensures that any necessary adjustments can be made quickly, maintaining the smooth operation of the Automated Clearing House (ACH) network and preventing further complications with the transaction process.

Timeliness in responding helps uphold efficiency within the payment system while adhering to regulatory requirements that govern ACH transactions. This also facilitates clear communication between financial institutions and promotes trust in the ACH process.