The Central Bank of Nigeria (CBN) has issued circular to all Banks and other financial institutions on the need for continuous recovery of loans.
A Circular signed by the Director, Financial Policy And Regulation Department, CBN, Chibuzo Efobi, was for the review of Guidelines on the Global Standing Instruction (GSI) Individuals, as a way of promoting financial system stability.
CBN, according to the Circular said, “the initiative was conceived to fundamentally address the recurring instances of willful loan default in the industry in order to:
“identify and watch-list recalcitrant loan defaulters; enhance loan recovery from all eligible and funded accounts/wallets in the industry; improve credit repayment culture; and o reduce non-performing loans in the Nigerian banking system.
“Consequently, please be informed that the frequency of recovery attempts via the GSI platform has been amended from a specific number to continuous and unrestricted.
“In other words, the GSI automated loan recovery feature applicable to all loans in the industry shall remain perpetually in place throughout the life of the loan and/or until the loan is fully repaid.
“Please be guided accordingly and review the Guidelines, which remains available on the CBN website”, the Circular said.
