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Why is it called 'Standing Instruction'?

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Wiki User
July 08, 2008 7:57AM

Standing instruction has element of permanance in it. It remains in force for all time to come till repealed. A Standing Instruction (SI) is a remittance service by which a customer can instruct a Bank to effect regular funds transfers at pre-set timings and amounts from the customer's deposit account to designated beneficiary account(s).

The S/I service can be used to effect :

- Repayment of loans / hire purchase instalments

- Payment of bills / school fees / insurance premiums, etc

- Salary payments

- Inter-account transfer of funds

- Payment of safe deposit box rental

- Inter-account transfer of F/D interest upon auto-renewal (to be manually processed)

- Purchase of cashier's orders (which will be mailed to applicant customer via registered post)