What would be some reasons why a Financial Institution would prohibit (or allow) RDC on Analyzed SAV/MMA? The use case for some businesses, such as Property Management Companies wishing to deposit directly into an Analyzed MMA where security deposits are held, has been brought to our attention, but we do not generally allow for Analyzed SAV/MMA to use RDC. We are looking for justificaiton for continuing to prohibit these account types from using RDC. Is this an overly conservative approach?

Do you mean RDC into SAV or MMA Accounts?  A consumer could RDC into a SAV or MMA I beleive.
But for commercial customers you cant by law in most places co-mingle security deposits with regular funds due to the required accounting of those funds.  It creates a terribly challenging accounting process when funds are co-mingled as interest on the secured funds needs to be determined when returning the security deposit to the renter and paid to them.  You may want to consider a Master account for the Property Mng customer than sub accounts for each rental whereby accounting can be done at the sub account level, and reporting of interest etc can be provided by the FI. Same thing if your keeping IOLTA Interest On Lawyers Trust Accts - 1 Lawyer - numerous sub accounts for each client for whom atty. is keeping funds.. pmcguire@jackhenry.com if you care to discuss further.