The New CBN's GSI Policy: How It Affects You (Global Standing Instruction)

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Erudite
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Location: Naija
 

July 16th, 2020, 6:51 am

IMPACTS OF THE NEW CBN POLICY OF GSI ON YOU
CBN's GSI Policy - Nigeria
CBN's GSI Policy - Nigeria
The Nigerian apex bank CBN on Monday July 13 2020 released a new policy called #GSI (Global Standing Instruction). The policy is meant to protect lenders and is a very welcome policy. See attached PDF document of the official CBN guidelines on GSI.
CBN - Operational Guidelines on Global Standing Instructions GSI - Individuals.pdf
CBN GSI Operational Guidelines
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Here's a summary of the GSI Policy and how it affects you:

1. The GSI applies to all financial institutions in the country especially DMBs (Deposit Money Banks, Lenders etc).

2. In case you're defaulting in a loan you take from a financial institution, the GSI permits the lender institution to take advantage of your #BVN to locate accubts where you hold funds and settle the debt.d

For instance, say you take N100,000 Loan from Access Bank and you default in repayment, but you have a balance of N120,000 in your GTBank account, the GSI now permits Access to settle N100,000 off from the N120,000 in GTB. And that will leave behind N20,000. Got it?

3. Takes advantage of BVN. Even joint accounts are not excluded.

4. Even if you do not have a funded account with BVN, then your BVN would be watchlisted. This will be a bad development.

5. MAJOR NOTE: Only the principal repayment and interest would be swept from your other accounts. Penalty charges would not be included.

6. LEGAL: If a bank wrongfully activates GSI on you (you have not defaulted on your loan and they go make the system sweep from your other accounts) , the bank will pay you a fine of.N500,000

7. LEGAL: If you register complaint of a wrongful activation of GSI on your accounts, but the bank claims you are wrong, you then decide to request for arbitration. If the arbiter rules that you are correct, then the bank pays a fine of N10 million.

The GSI becomes effective from August 1st 2020.

This #GSI helps the financial system to fight serial loan defaulters and allows banks to more confidently 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.

This is a major shift in our country's finance sector.

Please share...

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makavelli25
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July 16th, 2020, 7:20 am

Interesting
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Dia mon
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July 17th, 2020, 6:37 am

:thnk: this is serious or🤔
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