Some years back the Central Bank of Nigeria introduced a policy, global standing instruction (GSI), which would allow a creditor bank to recover a loan from a defaulter, without any further recourse to the borrower, from their accounts in other banks.

For instance, if a customer takes a loan or credit from GTB and defaults in repaying according to agreed repayment schedule, GTB can contact Zenith Bank, Access Bank and First Bank, if the customer has accounts with sufficient credit balances in those banks, and the accounts are linked by his or her bank verification number (BVN), to recover the full value of the loan or credit without any further recourse to the defaulting customer.

Now, I'm curious if this GSI has ever been used before. I want to know if loans have ever been recovered this way from defaulters before.

If money in your accounts in other financial institutions have ever been debited before because of a loan you took, kindly share your experience and let us know

For more information on the policy, check this article: https://www.premiumtimesng.com/news/headlines/406492-explainer-cbns-new-gsi-policy-what-bank-customers-need-to-know.html

Cc lalasticlala

Yes, it happened to me twice, it's really frustrating, especially in this present economic situation in the country

gale2626:
Yes, it happened to me twice, it's really frustrating, especially in this present economic situation in the country

Really? What bank were you owing? And what bank did they deduct the debt from?