GSI can only be used to trigger repayment of outstanding principal and accrued interest

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3.0 STAKEHOLDERS-ROLES AND RESPONSIBILITIES

The underlisted are GSI stakeholders:

a. Borrower

b. Creditor Bank

c. Participating Financial Institutions

d. Nigeria Inter-Bank Settlement System (NIBSS)

e. Central Bank of Nigeria (CBN)

3.2.2 Creditor Bank

The Creditor Bank shall:

a) Ensure that borrowers are properly educated about the GSI mandate and its implications; and enshrine same in their loan application process.

b) Review and validate the GSI mandate instrument prior to loandisbursement.

c) Indemnify NIBSS and other Participating Financial Institutions from all liabilities that may arise from inappropriate use of the GSI infrastructure.

d) Retain copies of physical or digital version of the executed GSI mandate and to provide same when required.

e) Ensure that the GSI Trigger Amount is only for outstanding Principal Amount and Accrued Interest (excluding ANY Penal Charges).

f) Comply with CBN’s Prudential Guidelines as it applies to classification of loans.

g) As a risk management tool, the MD/CEO of each PFI shall routinely update the Board

of Directors on the GSI process as it relates to frequency of use and amounts recovered or released.