What is the function of an Originating Depository Financial Institution (ODFI)?

The function of an Originating Depository Financial Institution (ODFI) primarily involves receiving payment instructions from Originators and then forwarding those instructions to the ACH Operator for processing. This process is crucial in the Automated Clearing House (ACH) network, where the ODFI acts as the financial institution that initiates electronic payments on behalf of its customers, the Originators.

By fulfilling this role, the ODFI ensures that transactions are executed smoothly within the ACH framework. This includes not only the forwarding of payment instructions but also managing the necessary authentication and compliance aspects that support the integrity and security of the transactions.

In contrast to other roles within the ACH system, such as providing services to the Receiver or issuing payment cards, the responsibility of the ODFI is specifically tied to linking Originators with the ACH network through the submission of payment instructions to the ACH Operator, thus making option C the most accurate description of the ODFI's function.