STANDING

INSTRUCTI
ON
Created by Paul Adewusi
 AGENDA
● INTRODUCTION
● TYPES OF STANDING INSTRUCTION
● PRODUCT
● INSTRUCTION INPUT/ONLINE
DETAILED
● OPERATIONS ON STANDING
INSTRUCTION
● ADVICES
 INTRODUCTION
Standing instructions, also known as standing orders or recurring payments, are arrangements
made by an account holder with their bank to automatically transfer funds from their account to
another account or recipient on a regular basis. These instructions eliminate the need for manual
intervention and ensure timely and consistent payments or transfers.

SI module is designed to automatically process an instruction that has been recorded, apply
relevant charges and generates advices.
 INTRODUCTION

Instruction can be recorded for handling a situation where an instruction cannot be processed
due to lack of funds.

Charges can be collected as a rate or a flat amount on a slab or tier basis, It can be defined for
product and cascaded down to contract/Instruction input. Modification is allowed for charges for
individual instruction
 TYPES OF STANDING
INSTRUCTION
01 PAYMENT 04 SWEEP OUT

VARIABLE
02 COLLECTION 05 PAYMENT

RANGE BALANCING
03 SWEEP IN 06 SWEEP
 PAYMENT
Payment order is the most commonly used service.

Under this service, one or more customers' accounts are debited and one or
more are credited

It is called payment because it is used for making a payment like regular

Insurance payment.
 COLLECTION
A standing collection order is a feature that enables customers to authorize a
regular collection of funds from their account by a specific beneficiary. It
allows beneficiary to automatically collect payments from the customer's
account at predetermined intervals without requiring manual intervention for
each transaction.

When a standing collection order is processed in Flexcube, the relevant

modules, such as the Journal entry or Funds Transfer module, handle the
actual transfer of funds and crediting of amounts to the recipient's account.

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 int the customer's account.
 SWEEP IN
A Sweep In standing instruction allows the automatic transfer of funds from a
linked account to the primary account specified in the standing instruction. It
is commonly used to maintain a minimum balance or to cover any shortfall in
the primary account.

It ensures that whenever the balance in the customer account goes below a
certain amount, money is swept in from another account.
 SWEEP OUT
A Sweep out standing instruction allows the automatic transfer of funds from
a linked account to the primary account specified in the standing instruction.
It is commonly used to maintain a maximum balance in the linked account.

It is used to sweep out funds out of a low interest earning account into a high
interest earning one.
 VARIABLE PAYMENT
This is similar in a way to Payment type of standing instruction but the
amount to be debited for each cycle would vary, which means one would
specify the amount every time a cycle has to be executed. In payment type,
the amount debit is fixed for each cycle.

Example for variable payment is payment of telephone bills or electricity

where the amount would be different each time
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 to the parent account, If the balance is less
than the lower limit then the deficit will be credited by a sweep from the
parent account
STANDING
INSTRUCTION
PRODUCT
(SIDPRMNT)
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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 to the parent account, If the balance is less
than the lower limit then the deficit will be credited by a sweep from the
parent account.
 PRODUCT
Product Code
You need to identify a standing instruction product that you are creating with
a unique Product Code. This code should be unique across all the modules
of oracle FLEXCUBE. This code should be different from instruction code
that is given

Instruction Code
You should give the product another unique code that will be used to
generate the instruction Reference Number. This code should be different
from the product Code that will be used to generate the contract reference
number for each cycle of the instruction.
SI PRODUCTS - PREFERENCES
 PRODUCT
Product Group
Grouping products, according to the common features they share, helps you
organize information relating to the services you provide. Product Groups
also help you retrieve information easily.

You can invoke a list of the product groups that you have maintained in your
bank and choose the product group to which the product that you are
creating belongs.
 PRODUCT
Product Group
Grouping products, according to the common features they share, helps you
organize information relating to the services you provide. Product Groups
also help you retrieve information easily.

You can invoke a list of the product groups that you have maintained in your
bank and choose the product group to which the product that you are
creating belongs.
PRODUCT – PROCESSING TIME
Beginning of Day (BOD)
BOD represents the time when the standing instruction module starts
processing transactions for the day. Any standing instructions scheduled for
execution on that day will be queued for processing.

End of Day (EOD)

EOD represents the cutoff time for processing standing instruction
transactions scheduled for that day. Any standing instructions processed
before EOD will reflect in the account balances and transaction records of
the involved accounts.

Intraday
Intraday refers to the period between BOD and EOD, encompassing the
entire duration of the banking day. In terms of standing instruction
processing, it refers to the timeframe during which standing instruction
transactions are processed and reflected in the account balances and
transaction records within the same banking day.
PRODUCT – HOLIDAY EXCEPTION
Forward
when the original date falls on a holiday or non-working day. Instead of
waiting for the next working day after the holiday, the transaction is moved
forward to the nearest preceding working day.

Backward
when the original date falls on a holiday or non-working day. Instead of
executing the transaction on the holiday or non-working day itself, the
transaction is moved backward to the nearest succeeding working day.

Lapse
Lapse refers to the option of not processing a standing instruction
transaction when the scheduled date falls on a holiday or non-working day.
In this case, if the scheduled date coincides with a holiday, the transaction
does not occur on that day and is not moved forward or backward. The
transaction is considered lapsed or skipped for that particular occurrence,
and the standing instruction remains in place for the subsequent scheduled
dates.
 PRODUCT – ACTION CODE
AMOUNT
Full Pending
indicates that the entire amount specified in the standing instruction is held
in a pending state and not executed. This action code is typically used when
there are insufficient funds available in the payer's account to complete the
full amount of the standing instruction. The transaction remains pending until
sufficient funds are available to execute the entire instruction.

Partial Liquidation
indicates that a partial amount of the standing instruction can be executed,
while the remaining amount is held in a pending state. This action code is
used when there are insufficient funds in the payer's account to fulfill the
entire standing instruction, but partial execution is possible. The specified
partial amount is transferred, and the remaining amount is held as pending
until sufficient funds become available.
 PRODUCT – ACTION CODE
Ignore AMOUNT
indicates that the standing instruction is to be ignored or skipped entirely.
This action code is used when there is a need to bypass or exclude a
particular standing instruction from being executed. It could be due to
specific customer instructions, temporary suspensions, or other reasons
where the instruction should not be processed at that time.

Wait For Further Instruction

indicates that the standing instruction is put on hold, and further instructions
are awaited from the customer or an authorized party. This action code is
used when there is a requirement for additional information or confirmation
from the customer before proceeding with the execution of the standing
instruction. The instruction remains in a waiting state until the necessary
instructions are received.
 PRODUCT – ACTION CODE
Force AMOUNT
indicates that the standing instruction is to be executed regardless of any
exceptions or conditions. This action code is used when there is a need to
override any restrictions or checks that would typically prevent the execution
of the standing instruction. It allows for the immediate processing of the
instruction without further validation.
PRODUCT – STANDING ORDER
WITH
Free Format Payment details
allow the payer to provide payment instructions in a flexible, unrestricted
manner. The payer can enter any relevant information or instructions in a
free-text format, such as a description, purpose of payment, or additional
details related to the standing order.

Structured Payment Details

involve providing payment instructions in a predefined format with specific
fields or elements. These structured formats typically follow standardized
payment schemes or formats such as IBAN (International Bank Account
Number), SWIFT (Society for Worldwide Interbank Financial
Telecommunication), or specific country-specific formats
 PRODUCT – SI TYPE
One To One
There is a single payer or sender and a single payee or recipient. It
represents a direct and exclusive relationship where a specific instruction is
established between one payer and one payee. The standing instruction
involves the transfer of funds or the execution of a specific action from the
payer's account to the payee's account.

One To Many
there is a single payer or sender who provides instructions to multiple
payees or recipients. The standing instruction involves the transfer of funds
or the execution of a specific action from the payer's account to multiple
payee accounts.
 PRODUCT – SI TYPE
Many To One
There are multiple payers or senders who provide instructions to a single
payee or recipient. The standing instruction involves the transfer of funds or
the execution of a specific action from multiple payer accounts to the
recipient's account.

Many To Many
There are multiple payers or senders who provide instructions to multiple
payees or recipients. The standing instruction involves the transfer of funds
or the execution of a specific action between multiple payer accounts and
multiple payee accounts.
 PRODUCT – EXECUTION
Days PERIODICITY
The system displays the execution days defined at the product level.
However, you can
modify this. For example, 30 days, 90 days and 365 days

Months
The system displays the execution months defined at the product level.
However, you can
modify this. For example month, 3 months and 12 months.

Year
The system displays the execution years defined at the product level.
However, you can
modify this. This is not possible for the first two years. For the third cycle you
can choose 1
year.
 PRODUCT – EXECUTION
PERIODICITY
Month End
Check this box to indicate that the instruction should be executed on the
month-end day

The Execution Periodicity for the Product Type ‘Range Balancing Sweep’
should be One-
day.
 PRODUCT – ACCOUNTING ROLE
Accounting Role
It determines how the financial impact of the standing instruction is reflected
in the accounts and ledgers of the involved parties.

in a typical standing instruction transaction, there are two primary accounting

roles: Payer's Accounting Role and Payee's Accounting Role
STANDING
INSTRUCTION
INPUT/ONLINE
DETAILED
(SIDTRONL)
ONLINE DETAILED – SI GROUP
SI Group
Specify the SI group from the option list. The list displays all the SI groups
maintained in static type maintenance (CODTYPES) under type ‘SIGROUP’.

This value has to be selected only if the SI product used has Intraday type of
execution else, the system will display an error.

Tanked Status
The standing instruction requests are processed with the ‘Tanked’ status if
the branch is not available when the transaction was received.
When the branch is available, the status is changed
 ONLINE DETAILED
Specifying Counterpart
When entering the details of an instruction, you should specify the
counterparty on whose behalf you are recording it. The category of
counterparties (or the customers themselves) who can record standing
instructions is defined for the product. Specify the code of a counterparty
who falls into a category allowed for the product.

First Value Date

The value date for the first execution is usually the same date as the first
due date, unless that is a holiday. In that case, the First Value Date will be
computed based on the holiday handling specifications for the product.By
default, the First Due Date will be today s date. You can change it to a date
in the future. Oracle FLEXCUBE will automatically compute the next
due date and next value date based on the periodicity defined for the
product.
 ONLINE DETAILED –
SI Expiry Date
The Expiry Date will be the date until when the instruction will be processed.
This field needs to be mandatorily updated if the TD account is the Credit
Account. The SI Expiry Date entered for TD accounts should be less than
the maturity date of the deposit.

SI Amount
refers to the specific amount of money or funds involved in a standing
instruction transaction. It represents the monetary value that is being
transferred, deposited, or utilized as per the instruction.

The SI amount is a crucial element in a standing instruction as it determines

the financial impact and the value associated with the transaction. It can be
a fixed amount or a variable amount.
ONLINE DETAILED – FIXED AND VARIABLE
AMOUNT
Fixed Amount
A standing instruction may involve the transfer of a fixed amount of money
from the payer's account to the payee's account on a regular basis. For
instance, a monthly standing instruction to transfer $500 from a savings
account to a checking account.

Variable Amount
In some cases, the SI amount may vary based on certain conditions or
factors. For example, a standing instruction to transfer the outstanding
balance on a credit card to the card issuer's account on the due date. The SI
amount would depend on the outstanding balance at that specific time.
STANDING
INSTRUCTION
ADVICES
 ADVICES
EXEC_ADVICE
This advice will be generated on successful execution of SI.

OPEN_ADVICE
This advice will be generated on successful creation of an instruction.

AMEND_ADVICE
This advice will be generated when an existing Instruction is amended.

CLOSE_ADVICE
This advice will be generated on closing an instruction.
 ADVICES
PAYMENT_MESSAGE
This advice will be generated on credit of a payment.

REOPEN_ADVICE
This advice will be generated while reopening a closed instruction.
STANDING INSTRUCTION
SLIDES compiled and
edited by Paul Adewusi

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