Adjútor from Lendsqr
API ReferenceLendsqr
  • Introduction
    • Overview
    • Getting Started
    • Test and Live mode
    • Making your first API call
    • Webhooks
  • Authentication
    • Authentication Type
    • Generating your API key
  • USE CASES
    • Introduction
    • Loan repayment with Direct Debit
    • Corporate Cash and Treasury Management
    • Buy Now Pay Later (BNPL)
    • Embedded Credit/ Finance
    • Loan scoring/ Credit scoring
    • Customer Validation
    • Implementing GSI with Direct Debit
  • Adjutor API Endpoints
    • Oraculi Mobile SDK (Beta)
      • Installing the SDK
      • The Oraculi SDK data journey
    • Validation
      • Bank Verification Number
      • Bank Account Verification
      • Karma Lookup
      • Ecosystem Lookup
    • Decisioning
      • Decision Model Lookup
      • Oraculi scoring
    • Credit Bureaus
    • Direct Debit
      • How Direct Debit works
      • The Direct Debit process
      • Understanding Mandate Statuses
    • Embedded Loans and Payments
    • Platform Data
      • Data for Lenders
      • Operational Services
    • Transactions and Balances with Kolo
      • Initializing Authorization
      • Using your access token
      • Permission Scopes
    • Core Services
  • ADDITIONAL INFORMATION
    • FAQs
    • Getting Support
    • Pricing
    • Glossary
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  • Objectives of GSI:
  • How this works:

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  1. USE CASES

Implementing GSI with Direct Debit

GSI (Global Standing Instruction) was created by the Central Bank of Nigeria (CBN) as a last resort for banks and financial institutions to recover outstanding loans from chronic debtors. It allows the creditor bank (the bank that gave the loan) to recover their debt from any or all other accounts held by the borrower with other financial institutions in the case of default.

Objectives of GSI:

  • Facilitate an improved credit repayment culture.

  • Reduce Non-Performing Loans (NPLs) in the banking industry.

  • Watch-list consistent loan defaulters.

How this works:

Borrower Authorization: The borrower authorizes the lender to recover outstanding debts automatically from their bank accounts across different financial institutions.

Linking Accounts: The borrower must link all qualifying bank accounts to their Bank Verification Number (BVN).

Triggering GSI: In case of default, the creditor bank triggers the GSI, which initiates a balance enquiry and issues debit instructions to other financial institutions holding the borrower's accounts.

Executing Debit: The Nigeria Inter-Bank Settlement System (NIBSS) facilitates the transfer of funds from the borrower's accounts in other banks to the creditor bank.

This use of GSI helps lenders recover outstanding debts from your customers who have funds in other bank accounts, ensuring efficient debt recovery and reducing defaults.

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Last updated 10 months ago

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