With the help of Standing Instruction, you can save a lot of your time. Read this article to understand fully what is standing bank.
Isn’t it irritating when you have to pay to someone on a regular basis and you need to go to the bank for the payment or open your net banking account and then transfer the fund? In my case, this is a huge YES. I always feel so much irritated whenever I need to login to my net banking account to pay someone on a regular basis.
To overcome this type of problem, almost all bank has launched a feature called as Standing Instruction. So what is Standing Instruction?
According to Wikipedia, a standing order (or a standing instruction) is an instruction a bank account holder (“the payer”) gives to his or her bank to pay a set amount at regular intervals to another’s (“the payee’s”) account.
In standing Instruction, we just need to give order to the bank that we want $x to be transferred to someone else’s account. Suppose you have lent a house from your landlord and you need to pay $500 every month to him on the 5th day of each month. There are three ways you can do it. Either you can go to his house on 5th day of each month and pay him the money or you need to open your net banking and transfer him $500 each month on the 5th day. And suppose you fail to do so, Allah knows what would he do to you. However, there is one more way to do it. You can just instruct your bank to transfer $500 each month to your landlord’s account on 5th day of each month and then forget about the payment.
So which method you found easiest. Of course, third method. Third method is also called as Standing Instruction or Standing Order.
Few Things about Standing Instruction:
As we all know, almost all the banking services comes with a “conditions applied” tag. So is Standing Instruction. Below are few points that are worth reading
Standing Instruction is applicable for Saving Bank Account as well as Current Bank Account. So if you have Current Bank Account, you need not to worry for being not eligible for the Standing Instruction.
For activation, you need to use your online banking. You can also go to the nearest branch office for activating Standing Instruction.
Bank will send you an SMS as well as an Email (depends on bank to bank) when ever bank processes any Standing Instruction activity with your account.
The frequency for Standing Instruction varies from 1 month to 6 months and from 5 days to 30 days.
You can always cancel Standing Instruction anytime prior to the payment. However, if the payment is done, you cannot cancel the Standing Instruction.
You can always find a history of Standing Instruction as well as the payee account number.
Thank you for reading this article.