Uganda sets new cash withdrawal limits for individuals and firms as digital payments surge

Uganda sets new cash withdrawal limits for individuals and firms as digital payments surge
Uganda sets new cash withdrawal limits for individuals and firms as digital payments surge - The Bank of Uganda. (Photo: Handout)
The Bank of Uganda. (Photo: Handout)

New rules taking effect in January 2027 will limit daily cash withdrawals for individuals and businesses while encouraging greater use of digital payment channels.

The Central Bank of Uganda has introduced new limits on cash withdrawals from individual and corporate accounts, effective January 2027.
Under the new rules, withdrawals from individual accounts will be capped at UGX 50 million per day, while corporate accounts will be limited to UGX 250 million per day.
The move, announced on Wednesday, follows what the regulator described as a growing shift towards digital payment methods across the country.

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“You, the consumers, have spoken; you prefer digital payments, and cheques are on the decline. Cheques have fallen in the last 6 years from 14 per cent of the transactions we clear each year to six per cent, reflecting a move to digital payment channels. This is why we are reducing the limits on cheques between different banks,” the financial sector regulator said.
The new measures will apply to all financial institutions supervised by the Bank of Uganda.
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“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,” the regulator added.

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However, the regulator noted that financial institutions may grant exemptions for specific transactions or sectors that continue to rely heavily on cash.
In such cases, institutions will be required to develop and implement comprehensive risk-based customer profiles, which could also result in lower withdrawal limits being applied.
The Bank of Uganda clarified that the restrictions will not affect digital payment channels such as the Real Time Gross Settlement System (RTGS), Electronic Funds Transfers (EFTs), and Mobile Money Bank-to-Wallet transfers.
The changes also extend to interbank cheques that exceed the prescribed limits, although drawers and payees who hold accounts within the same financial institution will be exempt.
As part of the changes, the interbank cheque limit has been reduced from UGX 10 million to UGX 5 million, from USD 2,750 to USD 1,375, from GBP 2,200 to GBP 1,100, and from KSh 300,000 to KSh 150,000.
The regulator urged the public to embrace alternative digital payment options.

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