Central Bank of Nigeria has on Monday released the guidelines aimed at reducing non-performing banks loan in the banking sector and monitoring chronic loan defaulters.
The circular, which was signed by the Director, Financial Policy and Regulation Department, CBN, said, “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 apex bank said it collaborated with stakeholders to develop necessary protocols to facilitate a seamless implementation of the GSI process, including eligible banks loan granted from August 28, 2019.
It stated that the guidelines would take effect from August 1, 2020.
It added that they would indemnify the Nigeria Inter-Bank Settlement System and other participating financial institutions from all liabilities that may arise from inappropriate use of the GSI infrastructure.
They must also ensure all qualifying accounts were properly maintained and visible to NIBSS on the industry customer accounts database or by any other service created or provisioned for this purpose.
The guidelines stated that they must “ensure that accounts in NIBSS’ ICAD are correctly tagged with correct BVN, and ensure and maintain connectivity to the Nigeria Central Switch.