Bank of Uganda’s upgrade to interrupt interbank payments

KAMPALA: Businesses, employers and individuals face possible delays in receiving and sending money through bank transfers after the Bank of Uganda announced a four-day shutdown of two major interbank payment systems to facilitate a technology upgrade.

The temporary suspension of the Real Time Gross Settlement (RTGS) and Automated Clearing House (ACH) systems will run from 5pm on Thursday, November 5, until 9am on Monday, November 9, 2026, disrupting the processing of high-value transactions, bulk electronic payments, cheque clearing and direct debits.

The interruption could affect businesses settling supplier invoices, employers processing salaries, government agencies making payments and customers expecting money through transactions routed through the two systems.

In a public notice issued on Tuesday, the central bank advised financial institutions, government entities, businesses and individuals to make alternative arrangements and process time-sensitive transactions before the shutdown begins.

The Bank said the temporary closure is necessary to upgrade Uganda’s national payments infrastructure, with the changes intended to improve the efficiency, reliability, resilience and interoperability of the country’s financial system.

The upgrade is also expected to support regional financial integration under the East African Community (EAC) Cross-Border Payment System Masterplan, which was approved by central bank governors in the region to facilitate secure and efficient movement of money across member states.

The two systems perform different but critical functions in Uganda’s banking sector.

RTGS facilitates high-value and time-sensitive payments between banks and other participating financial institutions. Its suspension means transactions requiring immediate settlement through the system will not be processed during the closure.

This could affect large corporate payments, interbank settlements and transactions involving government institutions and other organisations that rely on real-time settlement.

The ACH, on the other hand, processes bulk electronic transfers, cheque clearing and direct debit instructions. Its temporary unavailability could delay salary payments, supplier settlements, standing payment instructions and other transactions processed in batches.

For businesses, the interruption could complicate cash-flow management, particularly for those with supplier invoices, loan obligations and other financial commitments falling due during the four-day period.

Individuals expecting salaries, pension payments, transfers from other banks or payments through direct debit arrangements may also experience delays, depending on the transaction and the channel used.

However, the Bank of Uganda notice does not indicate a blanket suspension of banking services. Mobile banking, mobile money, card payments and cash services are not specifically listed among the affected systems, although customers are advised to confirm the availability of particular transactions with their banks.

The central bank urged customers with urgent payment obligations to contact their respective financial institutions for guidance on alternative channels and transaction-specific arrangements.

“Customers requiring guidance on transaction-specific arrangements, including available alternative payment channels, should contact their respective financial institutions,” the notice states.

The Bank said it would issue further communication where necessary and notify the public once the upgraded services had been successfully restored.

Regional payments integration

Beyond the immediate disruption, the upgrade is part of broader efforts by East African central banks to improve cross-border payments and reduce barriers to financial transactions within the regional economic bloc.

The EAC Cross-Border Payment System Masterplan seeks to improve the movement of money between partner states by strengthening the connectivity and interoperability of national payment systems.

Improved interoperability could make it easier for businesses and individuals to transfer money across the region, while supporting trade, investment and other economic activities.

For Uganda, upgrading the national payment infrastructure is intended to strengthen the systems through which banks, businesses, government institutions and individuals move money.

However, the immediate priority for customers is to ensure that transactions due during the maintenance window are processed ahead of the shutdown or that alternative arrangements are made with their financial institutions.