Originating Depository Financial Institution

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What is Originating Depository Financial Institution?

In the banking industry, the Originating Depository Financial Institution is an interface between the Federal Reserve or ACH networks and the original transaction initiator. The ODFI guarantees that the transactions that are transmitted to the ACH network complies with all rules.

It differs from check processing simply because the bank paying is confirming a payment is in compliance.

Originating Depository Financial Institution is also referred to as an ODFI. 

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