2. Standing Instructions - an Overview

2.1 Introduction

A Standing Instruction (SI) 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.

This chapter contains the following section:

2.2 Key Features of SI Module

This section contains the following topics:

2.2.1 Processing Standing Payment Orders

As a measure to maximize processing efficiency, the SI module offers the following features:

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.

2.2.2 Processing Standing Collection Orders

A collection order is issued by a customer when a certain amount will come in to a customer’s account on a regular basis. The crediting of this amount has to be handled through other modules of Oracle FLEXCUBE -- Remittances or Journal Entries. When a collection type of instruction is recorded, a Collection advice will be generated for the customer who serves as a reminder for follow up on the amount that should be credited into the customer’s account.

2.2.3 Processing 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.

2.2.4 Processing Sweep Out Transactions

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

2.2.5 Processing Variable Payment Transactions

A variable payment is a variation of the payment type of instruction. In a payment instruction you would fix the amount to be debited, when the instruction is initiated this would be the amount for each cycle. 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, you would specify the amount every time a cycle has to be executed.

2.2.6 Processing Range Balancing Sweep

This facility gives the provision to sweep funds from one account to another based on the maximum and minimum balance limits. The account for which the minimum and maximum limit is maintained is called a child account and the other linked account is called the parent account. If the balance of the child account exceeds the maximum limit then the excess balance will be swept out of the parent account.If the balance of child account is less than the lower limit then the deficit will be credited by a sweep from parent account.

The amount tags specific to range balancing sweep are the following:

The accounting entries passed is as below:

Accounting Role


Amount Tag

Dr Account



Cr Account



Dr Account



Cr Account



Intra-day sweep transactions can be run manually during transaction input stage of FCUBS.These transaction can be executed in separated groups at different intervals during the day.You can also reverse the execution of an intra-day batch.

2.2.7 Reports

Information on the SIs defined and processed in Oracle FLEXCUBE can be retrieved in many forms. These reports can either be printed or displayed on the screen. The following are the reports for the SI module: