Introduction to Standing Order
A standing order (or a standing instruction) is an instruction given by a bank account holder (the payer), to their bank to pay a specific amount at regular intervals to another (the payee or beneficiary) account.
Within the Funds Transfer module, a fully operational sub-module is designed for effective regular payments. Entries are made in the STANDING.ORDER application. This user guide should be read in conjunction with the Funds Transfer user guide.
Product Configuration
For each account, a maximum of 9999 standing orders can be defined. During the creation of new standing orders, the system generates this number. Balance Maintenance (BM) STANDING.ORDER types must have a number between 900 and 999 and must be entered by the user accordingly. Therefore, the numbers generated for all other standing orders reach 899 and then proceed from 1000 to 9999.
Examples
- 111112.1 – The first
STANDING.ORDERexisting on the account 111112. - 222224.7 – The seventh
STANDING.ORDERexisting on the account 222224. - 444448.900 – The BM
STANDING.ORDERexisting on the account 44448, where a minimum balance must be maintained, so that the amount can be transferred from another internal account to restore the balance. - 444448.901 – The BM
STANDING.ORDERexisting on the account 444448, where a maximum balance has been defined above which the system transfers the funds out of the account.
Illustrating Model Parameters
The high-level configuration available in the Model Bank is given below:
| S.No. | Parameter | Description |
|---|---|---|
| 1. | STO.TYPES
|
Allows the user to define the types of standing orders that can be used by the account holder. |
Illustrating Model Products
Different types of standing order are listed below:
| Products | Description |
|---|---|
| Balance Inward | Allows transfer of funds from other internal accounts to restore the minimum balance required. |
| Balance Outward | Allows withdrawal of the excess amount (other than the minimum balance) and makes the payment as specified in the instruction. |
| Balance Principal | Allows transfer of funds during the start of the day process; hence, the system considers the account balance as the opening balance of that day. |
| Fixed | Executes instruction to pay a fixed amount to the bank on a regular basis and debit the customer’s account. |
| Periodic Payment | Allows payment of bills to third parties upon presentation of the bills defined in the standing order. The amount varies and there is no definite frequency. |
| Diary | Maintains a tracer system for ad hoc or regular actions that cannot be defined in a transaction. Users can specify the conditions in which the transactions can be executed in the Diary Details field by attaching a User Routine. |
| Direct Debit | Allows transfer of funds based on the direct debit mandate request received on the account. |
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