Receiving Depository Financial Institution Law and Legal Definition

Receiving depository financial institution (RDFI) is a financial institution qualified to receive ACH (Automated Clearing House) entries. These institutions should abide by the NACHA (National Automated Clearing House Association) Rules. The RDFI interlinks the Receiver's account with the Cards Association network. Both debit and credit transactions can be posted in RDFI according to the receiver's perspective.