What are ACH regulations?


Quick Answer

Automatic Clearing House regulations are rules, detailed in Part 210 of Title 31 of the electronic code of federal regulations, or eCFR, that define the rights and responsibilities of all stakeholders involved in the ACH system, explains the Bureau of the Fiscal Service of the U.S. Department of Treasury. Stakeholders include the public, government agencies, financial institutions and Federal Reserve banks. These regulations cover entry data, debit entries and credit entries that participants send or receive through the ACH system.

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Full Answer

As of December 2015, the first subsection of ACH regulations, 31 CFR Part 210.1, outlines the scope of these rules and lays out their relationship with other ordinances, notes the U.S. Government Publishing Office. The second part, 31 CFR Part 210.2, defines some of the terms used in the corpus of ordinances, while the third part, 31 CFR Part 210.3, outlines the underlying governing law and shows how it should be applied.

The fourth part of these regulations, 31 CFR Part 210.4, lays out the rules governing authorizations and revocations thereof, reports the U.S Government Publishing Office. The succeeding subsection, 31 CFR Part 210.5, details federal payment account requirements, while the next subsection, 31 CFR 210.6, sets out the obligations and liabilities of agencies participating in the ACH system. The seventh subsection, 31 CFR Part 210.7, defines the responsibilities of Federal Reserve banks.

Among others, subsequent subsections detail the responsibilities and penalties of financial institutions, define parties to a reclamation and lay out rules governing communication with account owners, according to the U.S. Government Publishing Office.

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