About

A Standing Instruction is a service offered to customers of a bank, wherein regular transactions that the customer wants to make are processed as a matter of course instead of initiating specific transactions each time. Once initiated, a standing instruction may go on for many months, or even years, with each cycle being processed automatically.

 

SI module processes the following types of standing instructions:

• Standing Payment Order

• Standing Collection Order

• Account Sweep (Sweep in and Sweep out)

• Variable Payment

 

Standing Payment Order: A payment order is perhaps the most commonly used service. Under this service, one or more accounts of your customer are debited and one or more credited. This is called a payment order because the service would mostly be used for making a payment, like regular insurance payments.  

 

Standing Collection Order: A collection order is issued by a customer when a certain amount of money is scheduled to  be credited to the customer's account on a regular basis. When a collection type of instruction is recorded, a Collection advice will be generated for the customer which serves as a reminder for follow up on the amount that should be credited into the customer's account. 

 

Sweep In Transactions: A sweep in instruction will be used when the balance in a customer account should constantly be maintained at a certain balance. A sweep in instruction ensures that whenever the balance in the customer account goes below a certain amount, money is swept in from another account.

 

Sweep In Transactions: A sweep out instruction will be used to move funds out of an account whenever the balance reaches a certain minimum. This is typically used to sweep funds out of a low interest earning account into a high interest earning one.

 

Variable Payment: In a variable payment type of instruction, the amount to be debited for each cycle would be different. Examples of variable payments would be the payment of electricity or telephone bills where the amount would be different each time. Thus, for a variable payment type of instruction, customer would specify the amount every time a cycle has to be executed.