Meaning
A Standing Instruction is a request given to a bank to automatically make payments or transfers on a fixed date.
Definition
It refers to a pre-set order where the bank processes recurring payments without manual action from the customer.
Uses
- Monthly bill payments
- Loan EMI payments
- Regular fund transfers
How It Works
Customers set the amount, frequency, and date. The bank executes the instruction every cycle until it is cancelled.
Benefits
- Ensures timely payments
- Avoids penalties
- Saves time
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