This error is being caused because there is at least one record that doesn't have the bank name selected on gift
This error will stop payments or instructions being added to Batch but will show a Pending Transaction on gifts

To resolve this error:

1.  Create a gift query to find those records who should be included in the batch and include filter Gift Information, Bank Name blank
2.  Open the gifts found in this query and add bank to the gift record, save and close
3.  Run the Update Pending Transaction plug-in to remove the pending transaction flag
4.  Create new batch and automatically generate transactions/payments

If the error still occurs and you don't have any records that are missing a bank, please check the following:

1. Go to Config > Membership Categories
2. Open the categories you use 
3. Go to 'Default Settings'
4. If you use 'Gift Defaults', check to see if you use the 'Pay Method' as 'Direct Debit' - if so, remove this and try running the batch again