By Patrick Okino
The Central Bank has announced limits on over-the-counter cash withdrawals from the financial institutions it supervises, effective 1 January 2027.
In a statement issued on Wednesday, June 3, the Bank said withdrawals from individual accounts will be capped at UGX 50 million per day, while withdrawals from corporate accounts will be limited to UGX 500 million per day.
“According to our data, payments have undergone a digital shift, and electronic credit transfers are now the leading payment method. Digital payments continue to grow in both volume and value, indicating that consumers trust and prefer their efficiency,” the Bank said.
The Bank added that financial institutions will be allowed to seek exceptions for specific transactions or sectors that remain heavily dependent on cash.
To facilitate a smooth transition and ensure customers are adequately informed about the new requirements and available digital payment alternatives, the Bank will launch a nationwide customer sensitisation and public awareness campaign beginning on 1 July.
The Bank acknowledged that some sectors continue to rely significantly on cash transactions. Accordingly, it has issued guidance to supervised financial institutions on managing exceptions through customer risk profiling, exceptional approvals, and the promotion of digital payment alternatives.