If a person gives instruction to his bank to pay a set amount at regular intervals to another (payee) account; it will be known as __:
If a person gives instruction to his bank to pay a set amount at regular intervals to another (payee) account; it will be known as __:
[A]Standing order
[B]Demand Draft
[C]Cheque
[D]Overdraft
Standing order A standing order is an instruction a bank account holder (payer) gives to his or her bank to pay a set amount at regular intervals to another’s (payee’s) account for fixed bills to pay rent, mortage, etc, then this type of instruction is also known as a banker’s order. The standing order is not suitable for paying variable bills viz. credit cards or gas and electricity bills, as they are used mainly when the amount is fixed to pay.
Originally written on
May 17, 2015
and last modified on
May 17, 2015.