Kampala, Uganda: The Bank of Uganda (BOU) has announced new limits on cash withdrawals and cheque transactions in a move aimed at promoting a cash-lite economy and accelerating the country’s digital transformation agenda.
Under the new regulations, which will take effect on January 1, 2027, individual account holders will be allowed to withdraw a maximum of Shs50 million per day over the counter from supervised financial institutions, while corporate and business accounts will be capped at Shs500 million per day.
The central bank has also set weekly withdrawal limits of Shs250 million for individuals and Shs2.5 billion for businesses.
“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 Central Bank stated in a circular dated May 29, 2026, addressed to chief executive officers of commercial banks, credit institutions, and microfinance deposit-taking institutions.
According to BoU, the reforms are intended to encourage greater use of secure electronic payment channels while reducing reliance on cash and paper-based financial transactions.
As part of the changes, the central bank has also reduced the maximum value of interbank cheques from Shs10 million to Shs5 million.
The limits on foreign currency cheques have similarly been revised downward. US dollar cheque limits have been reduced from $2,750 to $1,375, while euro cheque limits have been lowered from €2,250 to €1,125. Pound sterling cheque limits have been cut from £2,200 to £1,100, while Kenya shilling cheque limits have been reduced from KSh300,000 to KSh150,000.
BOU said the seven-month transition period before implementation will allow sufficient time for existing cheque instruments to be presented and cleared under the current framework.
The move forms part of the central bank’s broader strategy to modernize Uganda’s payments ecosystem, strengthen financial inclusion, and increase adoption of digital financial services across the country.
Financial sector analysts say the new limits are likely to encourage greater use of electronic transfers, mobile money, internet banking, and other digital payment platforms while enhancing transparency and traceability of financial transactions.
The Bank of Uganda has in recent years intensified efforts to promote digital payments as part of the country’s wider financial sector modernization agenda, with government agencies and financial institutions increasingly shifting services to electronic platforms.
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