Can anybody explain further about Reg D on “required notice period of less than 7 days”? Does this mean customer must let the Financial Institution know of their intent of withdrawal prior to 7 days? Thanks.

The bank is allowed to reserve a 7 day notice prior to allowing the customer to withdraw funds. This goes way back to some of the original preventive measures that might forestall a run on the bank and close its doors.

That has nothing to do with the preauthorized transaction limitations.