Overview:
The new measures, which take effect on January 1, 2027, are expected to reshape how businesses and consumers move money through the banking system.
KAMPALA — The Bank of Uganda (BoU) has capped over-the-counter cash withdrawals at Shs50 million a day for individuals and Shs500 million for businesses, while halving interbank cheque limits in a sweeping policy shift aimed at reducing cash transactions and accelerating adoption of digital payments.
The new measures, which take effect on January 1, 2027, are expected to reshape how businesses and consumers move money through the banking system.
In a circular issued to chief executive officers of commercial banks, credit institutions and microfinance deposit-taking institutions, the central bank said the reforms are part of its e-payments strategy designed to promote a cash-lite economy and support Uganda’s broader digitalisation agenda.
Under the new framework, individual account holders will be limited to withdrawing a maximum of Shs50 million per day and Shs250 million per week over bank counters. Corporate and business accounts will face a daily withdrawal limit of Shs500 million and a weekly cap of Shs2.5 billion.
The central bank has also reduced interbank cheque limits by 50 percent.
The maximum value of Uganda shilling-denominated interbank cheques will fall from Shs10 million to Shs5 million. Foreign currency cheque limits have also been revised downward, with US dollar cheques reduced from $2,750 to $1,375, euro cheques from €2,250 to €1,125, pound sterling cheques from £2,200 to £1,100, and Kenyan shilling cheques from KSh300,000 to KSh150,000.
BoU said the changes are intended to encourage wider use of electronic payment channels such as Real-Time Gross Settlement (RTGS), internet banking, mobile banking and other digital platforms.
“In line with the Bank of Uganda e-payments strategy, which aims to promote a cash-lite economy as part of the broader national digitisation agenda, the Bank of Uganda has reduced the interbank cheque value limits and introduced over-the-counter cash withdrawal caps,” the circular states.
The move represents one of the most significant interventions in Uganda’s payment ecosystem in recent years and comes at a time when the country is seeking to deepen financial inclusion and improve efficiency in the movement of money.
The central bank said banks and other supervised financial institutions will be expected to guide customers towards electronic payment alternatives and demonstrate that such channels are available, secure and effective.
Industry players say the measures could accelerate the adoption of digital financial services, particularly among businesses that continue to rely heavily on physical cash and paper-based transactions.
However, the transition may present challenges for sectors that remain largely cash-driven.
Recognising this reality, BoU has allowed financial institutions to apply risk-based customer profiling when implementing the withdrawal limits.
The regulator noted that industries such as agriculture, artisanal mining and other cash-intensive sectors may require special consideration due to the nature of their operations.
Under the framework, supervised financial institutions will be required to maintain updated customer profiles and assess transaction behaviour before determining appropriate withdrawal thresholds within the regulatory guidelines.
The central bank has also provided room for exemptions.
According to the circular, financial institutions may formally apply to BoU for waivers where specific transactions or sectors require cash withdrawals beyond the prescribed limits.
Such requests, however, will be subject to rigorous due diligence and risk assessment procedures.
The six-month lead time before implementation is intended to allow banks, businesses and customers to adjust their operations and payment habits.
BoU said it will work closely with industry stakeholders during the transition period to create public awareness about the new measures and available digital payment alternatives.
The awareness campaign will be coordinated through the Directorate of National Payment Systems.
The latest reforms underscore the central bank’s determination to modernise Uganda’s financial infrastructure and reduce dependence on cash, which remains prevalent despite rapid growth in mobile money and electronic banking services.
Analysts say the policy could help lower cash-handling costs, improve transaction traceability and strengthen efforts to combat financial crimes linked to large cash movements.
However, they caution that success will depend on the availability, reliability and affordability of digital payment infrastructure, especially in rural areas where access to banking and internet services remains limited.
BoU said the withdrawal limits and cheque thresholds will be reviewed periodically in consultation with the financial sector to ensure they remain responsive to changing market conditions and technological developments.
New limits at a glance
Over-the-counter cash withdrawals
Individuals
- Daily limit: Shs50 million
- Weekly limit: Shs250 million
Businesses
- Daily limit: Shs500 million
- Weekly limit: Shs2.5 billion
Interbank cheque limits
| Currency | Current Limit | New Limit |
|---|---|---|
| UGX | Shs10m | Shs5m |
| USD | $2,750 | $1,375 |
| Euro | €2,250 | €1,125 |
| GBP | £2,200 | £1,100 |
| KES | KSh300,000 | KSh150,000 |
The new rules take effect on January 1, 2027.