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The Central Bank of Nigeria on the 14th of July,2020, released a new batch of guidelines to facilitate an improved credit repayment system, reduce nonperforming loans, and take action against loan defaulters.
The utilisation of the Global Standing Instruction (GSI) will involve Borrowers, Creditor Bank, Participating Financial Institutions (PFIs), Nigeria Inter-Bank Settlement System (NIBSS), and the Central Bank of Nigeria (CBN), while the deployment of the GSI may be applied on the Individual Savings Accounts, Individual Current Accounts, Individual Domiciliary Accounts, Investment/Deposit Accounts (Naira & Foreign Currency), Joint accounts and Electronic Wallets of loan defaulters.
The GSI is expected to serve as the last resort for Creditor Banks who will be able to, without resort to the Borrower, debit the account of the loan defaulter and recover past due obligations (Principal and Accrued Interest-only excluding penalty charges) from any bank account existing in a PFI and linked to the loan defaulter through the BankVerification Number (BVN).
