Business Scenario

Jones is a forgetful person who has the tendency to forget all his monthly payments. So, he approached you to find a solution to pay his bills promptly.
You, being a banker, advised him to set up standing instruction which will help him pay his bills on a specific date every month.
Jones has to pay his rent amount of Rs.900 to his landlord and insurance bill of Rs.300 every month.
Your task is to help him set up his standing instruction as per Flexcube UBS process flow.

You have 2 savings account with Bank A. Since you are currently staying in a rented house, you are planning to buy a house which is under construction. You have availed home loan from Bank B.

You have decided to setup a Standing Instruction to debit Rs.1000 from your saving account 1 in Bank A to be credited to your loan account in Bank B.

Setup the standing instruction product using Flexcube UBS to debit Rs.1000 from your savings account 1 in bank A to the loan account in bank B.

Within few months your house is constructed and you move there. But you feel you need to improvise the house. So you top-up the existing loan which you have availed with bank B.

You wrote to both the banks about your change of address. Since you have topped up your existing loan, you request bank A to debit Rs.1200 every month from your savings account 2 instead of savings account 1. Bank A changed the account but overlooked the amount.

Play the role of bank officer in A and perform the changes in the existing Standing Instruction contract.

In the next month, bank B noticed that it had received Rs.1,000 as your EMI and not Rs.1,2000. So, bank B wrote to you to but to your old address. This happened for 5 months. On the sixth month, bank B declared your loan as a defaulted loan. Your loan went into arrears.

This issue came to light only when bank B registered the defaulted loan with credit reference agencies and you were unable to avail loan from any of the banks owing to your poor credit rating.