BANKING AFFAIRS

Detailed explanation-1: -A standing order (or a standing instruction) is an instruction a bank account holder ("the payer") gives to their bank to pay a set amount at regular intervals to another’s ("the payee’s") account. The instruction is sometimes known as a banker’s order.

Detailed explanation-2: -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.

Detailed explanation-3: -b) Trustee and Beneficiary: When a cheque or a bill of exchange is deposited with a bank for collection, the bank becomes a trustee for the cheque or bill till it is collected. Of course once the cheque is collected and the proceeds are credited to the customer’s account the banker becomes the debtor.

Detailed explanation-4: -Besides agency services, commercial banks perform many general utility services also. Banks render these services not only to their customers but also to the general public. The following are some of the important general utility services.

Detailed explanation-5: -banker has an obligation to honour cheques of its customer, drawn on him and presented for payment, subject to the condition that there are sufficient funds in the accounts and the cheque is in order.