Bank of Uganda (BoU) has reduced by half the maximum value that can be written on cheques to banks and other financial institutions.
Currently, amounts written on cheques are limited to a maximum value of Shs20 Million per transaction for exchange of instruments by commercial banks in the clearing house. The clearing house clears and settles cheque transactions on a daily basis.
But in a letter July 14 letter to all financial institutions, BoU said lowered the amount to be written on cheques from Shs20m to Shs10m.
The USD has been lowered from 5,500 to 2,750; the Euro from 4,500 to 2,250, the GBP from 4,400 to 2,200 and KES from 600,000 to 300,000
“In line with the provisions of Section 4.3 (b) of the Uganda clearing house rules and procedures, Bank of Uganda wishes to inform all clearing house participants of a downward revision to the cheque value limits for the currencies currently handled by the Clearing House,” BoU said in a statement.
“This follows a No Objection” received from the Uganda Bankers Association,” it added.