So far the Bank Verification Process according to the Central Bank Of Nigeria (CBN) has recorded an increase in the number of registered BVNs with over 66million linked accounts of active users.

The apex regulatory body under the stewardship of Mr. Godwin Emiefelein its quest to ensure that loans are readily available to a willing and capable member of the public introduced the Global Standing Order(GSI) IN 2019.

This was to stop existing debtors who plan to borrow extra money(ies) from other financial institution in Nigeria.

The Global Standing Instruction (GSI) would be linked with the Bank Verification Number(BVN) of all depositors to detect borrowers who are on loan, have bad repayment history and still intend to borrow more from unsuspecting institutions.

But what are 10 things everybody should know about the Global Standing Instruction (GSI)?

1. It applies to all financial institutions in the country.

This policy applies to all banks, the Nigeria Inter-Bank Settlement System (NIBSS) and the apex bank. They are all expected to work together for the successful implementation of the guidelines. So there is practically no hiding place for any debtor.

2. Any account having your BVN will be attached to defray your existing debt.

This simply means that all your individual savings accounts, current accounts, joint accounts, domiciliary accounts, investment /deposit accounts in both Naira and foreign currencies will be collapsed to pay off the loan.

If you obtained a loan from Gtbank and you refused to repay the loan upon maturity, all accounts within the country having your BVN will be collapsed to satisfy the debts regardless of the bank the account is domicile. Gtbank can easily access your savings account with Firstbank, Your current account with Fidelity Bank, your joint account with your wife in Unity Bank, and your domiciliary account with Zenith Bank to pay off the loan.

3. Even your fixed deposit, investment, business, and your joint accounts are not safe.

All monies hidden will be accessed to pay off the debt and the balance will be left for you to buy agege bread. There is no more hiding place. It is an operation you must pay your loan.

4. There is no hiding place for debtors

If we find out that you have an account that we should have moved money from but you have done ojoro in other to avoid repaying your loans by removing your BVN on that account or moving the funds to another account, the bank has the power to trace your account using your biometrics and then putting your BVN on any account having your biometrics. The BVN would be watchlisted. Once this is done finished, it is finished. You cannot transact in peace with your BVN until the debt is fully repaid.

5. They will only deduct the principal and interest from your other accounts.

Penalties for late payment and other charges would not be included. This will ensure than the bank does not deduct unnecessary charges. At least person nor go face their cutlass and sledgehammer charges

6. All banks must execute the GSI Mandate Agreement with the NIBSS

All banks must execute the GSI Mandate Agreement with the NIBSS. This is to ensure that all qualifying accounts remain visible to NIBSS on the Industry Customer Accounts database or by any other service created or provisioned for this purpose. Each bank must honour all balance inquiry and debit advice received from NIBSS for GSI Trigger in accordance with master agreement including GSI recall instructions.

7. All MD/CEO of the bank must regularly update the Board of directors on the GSI process

The guideline makes it mandatory for each bank chief executive officer to routinely update the Board of directors on the GSI process as it relates to the frequency of use, the amounts recovered, as well as the amount released.
All banks are expected to also report regularly to the CBN on recoveries made through the GSI, as well as, releases made to other banks.

8. What happens if Global Standing Instruction was wrongly activated on your account resulting in a wrong debit?

In the event of wrongful debit, the guideline provides that an erring bank would be made to take full liability and pay a flat fine of N500,000 per incident. As long as you have your proof and followed the right channels, the bank is duty-bound to pay you without questions. I know say some people go begin use this as prayer point, so that them go chop free money

9. What happens if you complain to your bank about a wrong debit and they refused to do anything about it?

If you approach your bank to complain about a wrongful activation of GSI on your accounts, the refuses to accede to your demand or claims they are within their right, you can exercise your right to take the bank before an arbitration panel.

If you get judgement on your favour, you are entitled to the sum of N10 million naira as compensation. You self don be instant millionaire with playing who wants to be a millionaire.

10. What if Madam's money is mistakenly affacted ?

Well, we both know the answer to this. If you carry your igbese affect madam money for joint account, or any other money when she give you keep for bank. I reserve my comment, becuase we go soon begin watch fuji house of commotion for Nairaland front page and perhaps na Oga Seun, Mynd44, lalastic'lala and Uboma go dey settle the matter.



The GSI becomes effective from August 1st 2020.

This Government has been making serious efforts to make credit available to people but so many are so blinded by hate all they see is the bad side of things....like if you handed power over to them they would do better.

Mention does things here please

fajana2007:
Hmmmm, Naija government buh you can check out my signature to know if you will be interested. Stay safe always

Thank you @Litigator.


Very informative.

This is not good news oooo.