SI stands for Standing Instruction in banking. It's a service that allows customers to automate recurring transactions, like bill payments or loan installments, without having to initiate each payment individually. Essentially, you tell the bank to regularly transfer a specific amount of money from your account to another account, either within the same bank or to a different bank.
For example, you can set up an SI to:
- Pay your monthly utility bills: The bank automatically debits your account and credits the utility provider's account each month.
- Make regular loan repayments: The bank automatically transfers the installment amount from your account to your loan account.
- Transfer money to a savings account: The bank automatically transfers a fixed amount from your checking account to your savings account every month.
Benefits of using Standing Instructions:
- Convenience: You don't have to manually initiate each transaction every time.
- Time-Saving: Automating these payments can save you time and effort.
- Reduced risk of missed payments: Ensures timely payments and avoids late fees or penalties.
How to set up a Standing Instruction:
- Contact your bank and request to set up a Standing Instruction.
- Provide the necessary details like the beneficiary's account number, amount, frequency, and the account from which the money should be debited.
- The bank will then set up the SI, and you can track its progress through your online banking or mobile app.
