No Hiding Place for Debtors as CBN Amend Rules Giving Commercial Banks Limitless Power to Recover Bad LoansYour support matters. Sustain independent journalism in Nigeria – contribute to Legit.ng. The Central Bank of Nigeria (CBN) has modified the Global Standing Instruction operational guidelines (GSI). According to CBN the revised guidelines will allow for continuous and unrestricted loan recovery by Deposit Money Banks (DMBs) and financial institutions in the country. CBN also said that GSI generates is a contractual mandate from an individual borrower in favor of a creditor bank to use funds standing to the borrower's credit in a third-party financial institution or electronic wallet to balance the borrower's debt obligations. Recommended for you "Portable's music changed my life": Man sheds tears, appreciates Zazu singe... The CBN announced this in a circular titled "Re: Global Standing Instruction (GSI) – Individuals," dated January 19, 2022, signed by Chibuzo Efobi, CBN Director, Policy and Regulations Department, and issued to all banks and other financial institutions. Do you have a groundbreaking story you would like us to publish? Please reach us through info@corp.legit.ng! According to the Circular, the frequency of recovery attempts via the GSI platform has been changed from a set number to continuous and unlimited as a result of the adjustment. The bank went on to say that the GSI's automated loan recovery function, which is applicable to all loans in the industry, would stay in force indefinitely during the life of the loan and/or until the debt is entirely repaid, ThisDay reports. The guideline also included a list of fines that can be imposed on banks and financial institutions if the GSI is violated or misapplied. Recommended for you “Hand dey scratch baba”: Davido mistakenly posts video of him getting massa... In July 2020, the central bank announced a GSI guideline targeted at improving debt recovery and monitoring chronic loan defaulters. The project was created primarily to address the industry's recurring instances of deliberate loan default in order to identify and watch-list obstinate borrowers. It also aims to improve loan recovery from all qualified and funded accounts/wallets in the banking sector, as well as to improve credit repayment culture and reduce Non-Performing Loans (NPLs) in the Nigerian banking system. Meanwhile, the Asset Management Corporation of Nigeria is set to publish the names of 7,912 chronic debtors who have failed to repay the loans collected from banks. AMCON, the body in charge of asset recovery in Nigeria has said it will name and shame loan defaulters from January. The body gave the debtors time to schedule a payment plan to avoid the embarrassment of seeing their names in national dailies soon. Source: Legit.ng In a move to ensure the number of non-performing loans in the country is reduced to the barest minimum the Central Bank of Nigeria has amended its loan recovery loan The amended rule gives commercial banks limitless power to ensure customers who accessed loans pay back CBN said the move was in furtherance of its mandate to promote financial system stability and reduce nonperforming loans Your support matters. Sustain independent journalism in Nigeria – contribute to Legit.ng. Do you have a groundbreaking story you would like us to publish? Please reach us through info@corp.legit.ng!