The Bankers Committee at its meeting of February 18,2020 approved the go-live on the (Global Standing Instruction), which is aimed at:

  i.  Facilitating an improved Credit Repayment Culture
  ii.  Reducing Non-Performing Loans in the Nigerian Banking System; and
  iii.  Watch-listing consistent Loan Defaulters

The GSI becomes effective from August 1st, 2020.
Below is a summary of the major points of the policy. This policy is enacted to help the system to fight serial loan defaulters and allow Financial Institutions to readily give out loans. The GSI Policy applies to all Financial Institutions in the country.

· If you take a loan in any bank and refuse to pay back, the bank would look for any other bank(s) in the country where you have accounts and there is money, they would take the money from those accounts and credit the loan account back. E.g. you take NGN 30,000 Loan from Aposhashamura and you fail to pay back and you have NGN 10,000 in your Access Bank Account, NGN 15,000 in your Sterling Bank Joint Account with your spouse and NGN 8,000 in your child's First bank Account that you help her manage (because she is still a minor). Aposhashamura would sweep the NGN 15,000 in your Sterling bank joint account with your wife, sweep the NGN 10,000 in your Access Bank, and take NGN 5,000 out of the NGN 8,000 you have in your child's First Bank account. All these money will be sent to Aposhashamura.

· Even if it’s a joint account that your BVN is found on, money would be moved from there.

· If the bank finds out that you have an account that they should have moved money from, but you have not put your BVN on that account, then your BVN would be watch listed.

· Only principal and interest would be swept from your other accounts.

· 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 a fine of NGN 500,000

· If you complain about a wrongful activation of GSI on your accounts, and 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.