By Our Reporter
NATIONAL
Bank of Uganda has introduced over-the-counter cash withdrawal limits in an effort to encourage digitalization of monetary transactions and emigration from paper based transactions.
In a circular dated 29th May, 2026, addressed to Commercial Banks, Credit Institutions and Microfinance Deposit-Taking Institutions, BoU directs that the limitations take effect from 1st January, 2027 to allow sufficient time for existing instruments to be presented for payments.
The new over-the-counter cash withdrawal limits are daily transactions for individual accounts, Shs50 million and Shs500 million for Corporate/Business Accounts.
Weekly individual accounts withdrawals shall be Shs250 million for Individual Accounts and Shs2.5 Billion for Corporate/Business Accounts.
The new policy is in line with BoU’s e-payments strategy which aims to promote a cash-lite economy as part of the broader national digitalization agenda.
Similarly BoU has reduced inter-bank cheque value limits from Shs10M to Shs5M for Ugandan shilling, USD 2,750 to USD 1,375, Euro 2,250 to 1,125, GBP 2,200 to 1,100 and Kenya Shillings 300,000 to 150,000 also effective 1st January, 2025.
“According to our data, payments have undergone a digital shift and electronic credit transfers are the number 1 payment method. Digital payments continue to grow in volume and value, indicating that consumers trust and prefer their efficiency,” say BOU in an added statement.
However, because some sectors still depend heavily on cash though, financial institutions will be able to seek exceptions for certain transactions or sectors
