This query deserves some extra attention to details. Here's how it works. the following table will hopefully clarify your query!



Ledger balance Rs.
(1)
SPAN required Rs.(2)
Clear credit balance Rs.
(1) - (2)
Payout request Rs. Settlement details

Case A: 

Payout request =  Clear credit balance

100000 30000 70000 70000 Payout processed for Rs 70000. Settlement considered as Standing Instruction settlement and thus settled for the quarter

Case B: 

Payout request <  Clear credit balance

100000 30000 70000 50000 Payout of Rs 50000 processed. Rs 20000 balance available. Settlement is NOT considered as SI settlement
Case C:
Payout request  >  Clear credit balance
 100000 60000   40000 50000  Payout of Rs 40000 processed. Settlement is considered as SI settlement and thus settled for the quarter