The Global Standing Instruction (GSI) is a policy introduced by the Central Bank of Nigeria (CBN) to enhance loan recovery and promote financial stability.
Official Circulars and Guidelines
Operational Guidelines on GSI – Individuals
Released on July 13, 2020, this circular outlines the framework for implementing the GSI. It became effective on August 1, 2020.
Amendment to GSI Guidelines
On January 19, 2022, the CBN issued an amendment to the GSI guidelines, allowing for continuous and unrestricted loan recovery attempts via the GSI platform throughout the life of the loan or until it is fully repaid.
Key Provisions of the GSI Policy
Scope of Application:
The GSI applies to various account types, including:
Individual Savings Accounts
Individual Current Accounts
Individual Domiciliary Accounts
Investment/Deposit Accounts (Naira & Foreign Currency)
Electronic Wallets
Joint Accounts
Eligibility Criteria:
For the GSI to be applicable:
Borrowers must execute a GSI mandate in hard copy or digital form.
All qualifying accounts must be linked to the borrower’s Bank Verification Number (BVN).
Recovery Mechanism:
In the event of a loan default, the creditor bank can, without recourse to the borrower, recover past due obligations (principal and accrued interest only, excluding any penal charges) by initiating a direct set-off from the borrower’s deposits/investments held in qualifying accounts with participating financial institutions.
Continuous Recovery Attempts:
Following the 2022 amendment, the GSI platform allows for continuous and unrestricted recovery attempts throughout the life of the loan or until full repayment is achieved.
