BoU caps over-the-counter cash withdrawals in push for digital payments
The new regulations, which will take effect on January 1, 2027, will cap cash withdrawals from individual bank accounts at Shs 50 million per day and Shs 500mln per week while corporate account holders will be limited to withdrawals of Shs 250mln per day and Shs 2.5 billion per week
KAMPALA, June 3, 2026 — The Bank of Uganda [BoU] has announced new limits on over-the-counter cash withdrawals as part of a broader strategy to accelerate the country’s transition to digital financial services.
The new regulations, which will take effect on January 1, 2027, will cap cash withdrawals from individual bank accounts at Shs 50 million per day and Shs 500mln per week while corporate account holders will be limited to withdrawals of Shs 250mln per day and Shs 2.5 billion per week.
BoU said in a statement released Wednesday that the measures are intended to support the financial sector’s electronic payments strategy and align Uganda with global trends favouring digital transactions.
“We are introducing limits to how much cash can be withdrawn over the counter from the financial institutions we supervise starting January 1, 2027,” the central bank said.
The restrictions will not apply to digital payment channels, including Real Time Gross Settlement [RTGS] and Electronic Funds Transfer [EFT] systems.
According to the central bank, electronic credit transfers have become the most widely used payment method in Uganda, reflecting growing public confidence in digital financial services.
The central bank acknowledged that some sectors of the economy remain heavily dependent on cash transactions. It said supervised financial institutions would be allowed to apply for exemptions in specific cases or sectors where cash use remains necessary.
In a related move, BoU also announced a downward revision of interbank cheque value limits for currencies processed through the Automated Clearing House, effective January 1, 2027.
The changes are intended to reflect the continued decline in the use of paper-based payment instruments and the growing preference for digital payment methods.
Under the revised limits, the maximum value for cheques denominated in Uganda shillings will be reduced from Shs 10mln to Shs 5mln.
Limits for foreign currency cheques will also be halved, with US dollar cheques reduced from US$ 2,750 to US$ 1,375, Euro cheques from €2,250 to €1,125, Pound Sterling cheques from £2,200 to £1,100, and Kenya shilling cheques from Ksh 300,000 to Ksh 150,000.
The central bank said the reforms are part of ongoing efforts to modernise Uganda’s payments ecosystem and encourage greater adoption of secure and efficient electronic payment systems.
https://thecooperator.news/bank-of-uganda-report-hails-national-economy-amid-global-uncertainty/
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