As part of the ongoing initiatives aimed at promoting a sound financial the system, the Central Bank of Nigeria (CBN) recently released an operation the guideline, for the Global Standing Instruction (GSI) to improve loan effort within the banking sector.
Techeconomy.ng gathered that thousands of customers have reacted to the implementation of the GSI as it aimed at reducing non-performing loans in the banking sector and to monitor chronic loan defaulters.
The interpretation of the initiatives is that a customer’s funds in any bank account will be deducted as long as he is owing other commercial banks in Nigeria.
The circular, which was signed by the Director, Financial Policy and Regulation Department, CBN, read: “The Bankers’ Committee, at its meeting on February 18, 2020, approved the go-live on the Global Standing Instruction, which aimed at facilitating an improved credit repayment culture; reducing non-performing loans in the
“Nigerian banking system; and watch-listing consistent loan defaulters. The banks would review and validate the GSI mandate instrument prior to loan disbursement.
“They would indemnify Nigeria Inter-Bank Settlement System and other participating financial institutions from all liabilities that may arise from inappropriate use of the GSI infrastructure.”
Reacting to the development, a bank customer whose name is withheld said he was not aware of the CBN’s new policy on loan defaulters. He said money that his wife transferred to his account was totally removed.
According to him, he was not at home when his wife called and told him that she wanted him to help her withdraw 50, 000 naira that she transferred to his account.
He explained further that the painful thing after a few minutes he got a debit alert from his bank that the money had been applied for his loan repayment.
The man cried out that the development could break his marriage because she just collected the money as her share of contribution to a business purpose.