RDC & the FFIEC Guidance

Question 1

What is Remote Deposit Capture (RDC)?

Answer 1

RDC is a deposit transaction delivery system that allows a financial institution to receive digital check information captured at remote locations.

Question 2

What law enabled RDC by authorizing substitute checks?

Answer 2

The Check 21 Act of 2004.

Question 3

What must an electronic check image include to meet Regulation CC?

Answer 3

Both the image of the item and the MICR line information.

Question 4

What are the three main types of RDC products?

Answer 4

Financial Institution Capture
Corporate Capture
Mobile Capture

Question 5

What is Corporate Capture?

Answer 5

When a user scans checks in-house using their own equipment.

Question 6

What does IQA stand for and what does it assess?

Answer 6

Image Quality Analysis – assesses the legibility and quality of the check image.

Question 7

What does IUA stand for and what does it assess?

Answer 7

Image Usability Analysis – assesses whether the image contains all necessary information for processing.

Question 8

What does FFIEC stand for?

Answer 8

Federal Financial Institutions Examination Council.

Question 9

Is FFIEC guidance mandatory?

Answer 9

No, but examiners base their reviews on it, so institutions must demonstrate compliance.

Question 10

What types of risks should be assessed in RDC?

Answer 10

Legal
Compliance
Reputation
Operational risks

Question 11

What should RDC agreements include?

Answer 11

Acceptable items, customer obligations, image quality standards, retention policies, termination clauses.