NRC banking, in the context of federal payments, refers to the process involving Non-Receipt Claims (NRC). This is specifically used by the U.S. Department of the Treasury's Bureau of the Fiscal Service when someone claims they did not receive a federal payment.
Essentially, when a recipient reports that a federal payment is missing, the Treasury initiates a Non-Receipt Claim. This claim is then sent to the receiving depository financial institution (RDFI) – the bank or financial institution that was supposed to deposit the payment.
The RDFI then has to provide information to help resolve the claim of non-receipt. This information can include:
- Proof of payment receipt
- Details of where the money was deposited
- Information regarding any errors that might have occurred during the payment process
In short, NRC banking is the procedure banks follow to respond to inquiries from the Treasury regarding potentially missing federal payments.
