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By Innocent Orok
The Central Bank of Nigeria (CBN) earlier in the week, released a new policy called Global Standing Instruction (GSI). The policy is a very welcome policy. Below, I tried to summarize the major points of the policy. The GSI becomes effective from August 1st 2020.
E.g you take 30k Loan from GTB and you fail to pay back. You have 10k in your Access bank account, 15k in your Sterling bank joint account with your wife and 8k in your child’s First bank account that you help her manage (because she is still a minor). We would sweep the 15k in your Sterling bank joint account with your wife, sweep the 10k in your Access Bank, and take 5k out of the 8k you have in your child’s First Bank account. We would send them all to GTB. The remaining 3k in your child’s First Bank account would not be touched. That’s a promise.
The GSI becomes effective from August 1st 2020.
This helps the system to fight serial loan defaulters and allows banks to more readily give out loans. As a matter of fact, a bank can now choose to give you a loan without you previously having an account with the bank.
It’s a new dawn in our country, Nigeria.
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